Cut in Spanish property taxes 'is helping the market'

The reduction in sales tax on new-build properties announced by the Spanish government in August is helping to boost the country's real estate sector, it has been claimed.

In an interview with the BBC, David Davies, from Blue Flag Properties, explained that the cut in the tax from eight to four per cent until the end of this year is encouraging more buyers to look at Spanish properties.

He pointed out that on a home worth €100,000 (£87,211) a four per cent saving can amount to a large sum of money.

Mr Davies added that this may be able to cover the cost of furnishing a new apartment, for instance, or fund the purchase of a car, noting that the value-added tax on such items then goes to the Spanish government and "kick-starts the wider economy".

At the same time as unveiling the reduction in sales tax on properties, the Spanish government also revealed a raft of austerity measures aimed at saving the country €5 billion.

Among the steps were a temporary rise in taxes for large businesses and new regulations relating to the use of generic medicines.
 

Like this? Then share with your friends and colleagues!