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Taxes Involved in Buying a Home in Spain Practical Guide - Taxes Involved in Buying a Home in Spain: Practical Guide

Acquiring a home in Spain entails a whole series of expenses beyond the sale price. It is worth considering them because these expenses may represent around 10 – 12% above the property price. Specifically, the highest of these costs are taxes.

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Spain has announced plans to try to tackle the severe problems facing its housing market

The Spanish Government has decided to try to create more demand for new properties by cutting IVA (VAT) from 8 to 4 per cent thus saving a property purchaser a sizeable €8,000 on a €200,000 purchase.

Spain's economy was plunged into recession following the collapse of its once-buoyant property sector.

The government is also hoping that building projects will help create jobs and cut the unemployment rate, which is one of the highest in the eurozone.

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 50 per cent reduction in VAT is applicable until 31st December 2011 and has been widely welcomed by the property industry.

bbc.co.uk

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.

news.cyprus-property-buyers.com