Greek real estate agents think Greece should emulate Spain
Spanish government has announced plans to temporarily reduce the rate of VAT on newly built housing. It is an attempt to encourage sales and boost property market.
The announcement came at a recent press conference where the Spanish Finance Minister, Elena Salgado, announced that rate of VAT on newly built housing will be reduced from 8 to 4 per cent until the end of the year.
Cyprus is in a similar position to that of Spain with thousands of newly built properties remaining unsold and littering the once popular seaside areas. Prices too have fallen and unemployment in the industry has risen sharply since the market peaked in 2007.