El blog de Maria

Your daily Spanish Law reporter. Have it with a cafe con leche.
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Legal tip 576. NEW! VAT reduced to 4% when buying property in Spain
19 August 2011 @ 15:21

Government has just reduced the VAT for the puchase of new built units from 8% to 4%.

It is an exceptional and temporary measure till next December the 31^st in order to promote the buying of new-built units in Spain.

Tarifa House by Ricky Salvatierra at Flickr.com

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6 Comments

Sandra said:
19 August 2011 @ 17:11

I hope these measures do help to stimulate the market but I have grave doubts that it will. Like the Property Roadshow plan, it is all too little too late, especially now that all of Europe is struggling with recession.
The damage has been done and until the news from Spain reports that recompense and/or compensation has been paid to ALL the victims of Spains Property abuses then I cannot forsee any imminent improvement in sales.

Sandra said:
19 August 2011 @ 17:13

P.S.
That is a truly beautiful, almost magical, gateway.

Sandra said:
22 August 2011 @ 11:21

I am afraid I agree with you on this Sandra!

marie therese hyland said:
30 August 2011 @ 10:18

maybe they should also reduce the very high fees estate agents change as well.

peterc said:
30 August 2011 @ 13:00

I totally agree with Sandra. Having spoken to a number of British potential buyers of Spanish property, the overwhelming sentiment is one of distrust. The Spanish Government must bring all the regions to heel and sort out the illegal property issues without delay. There are many people in Britain [and probably Northern Europe] who would love to buy houses in Spain, if they could only trust the Government to look after their interests. A 4% discount on the VAT just doesn't cut the mustard.

Maria said:
30 August 2011 @ 14:39

Marie Therese and Peter:
Totally agree with you, there is a lot to be done by the Government: Bank guarantees issues, illegal properties, regulation of estate agency proffession, more regulation for lawyers...