Price and tax reductions making Spanish property desirable, experts claim

[Nicholas Wallwork]

A reduction in tax paid on new properties and incredibly low prices are set to boost the Spanish property market, according to real estate professionals. The Spanish Government has decided to try to create more demand for new properties by cutting IVA (VAT) from 8% to 4% thus saving a property purchaser a sizeable €8,000 [...]

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[LaurenX]

Am I right in saying that it is only for new properties though? Or will it be for second hand homes too?

 

[DC]

new properties with VAT, 4% instead of 8%, recently they put it up from 7 to 8%, and now we are down to 4% until end of year.. (and election in November).
The government figures are there are 700.000 just under offplan units that need selling, so they are trying to kick start sales.

 

[DC]

resales are the same tax as before.