Spanish Government extend 4% vat tax reduction on new properties04/01/2012
Spanish Government extend 4% vat tax reduction on new properties
Wednesday 04 January 2012
We at Properties247 are pleased to advise that the New Spanish Government under Rajoy, has extended the reduction in VAT from 8% to 4% for brand new properties until the end of 2012. Take a look at our extensive range of properties for sale in Spain to find a property suited to you. This is only applicable on brand new properties, not resales.
Now, a property with a price of 200.000 EUR, will have a reduction in expenses of approximately 8.000 EUR!. With this decision, the Spanish government wants to increase the damaged sector of construction of new properties, with a high level of stock from properties for sale
In short, the initiative will be welcomed by buyers who will see a clear reduction in their purchase costs, developers who will sell a lot more stock and banks who will be financing more new property purchases.
The news also comes on the back of some strong data from the Ministry of Public Transactions, which recorded a 24.7% increase in the number of overseas buyers purchasing a property in Spain the 3rd quarter of 2011.
While figures for the final quarter of 2011 are yet to be published, it is expected that they will show an even bigger increase in overseas buyers returning to Spain and that the lower rate of purchase tax was instrumental in the late surge of buyers completing before the then deadline of 31 December.
While all coastal regions saw an increase, the Valencian region (Costa Blanca) was the biggest winner.
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