All EOS blogs All Spain blogs  Start your own blog Start your own blog 

Spain Real Estate News

What's really happening in the real estate world in Spain? The EOS Team are going to be keeping you up to date with everything that's happening from a market perspective.

4% IVA on new properties in Spain throughout 2012
18 January 2012 @ 12:37

In case you missed it, the government has extended their "50% IVA" deal when buying a brand new home in Spain, for the entire course of 2012.

It means that instead of paying the normal 8% IVA (the equivalent of VAT in UK) you now pay 4%. 

The deal was previously run during the last quarter of last year but obviously they thought this would be a good incentive to continue to keep the new stock rolling, even if it does, it seems, contravene EU law.

Make of that what you will.

And remember that this only applies to brand new properties that have never gone through the completion process.  There are still thousands of properties out there which are brand new but were completed on, either by the developer of the banks.

This IVA reduction only applies to those properties that have never completed.

As Tesco would say..."Every little helps".



Like 0




7 Comments


Mandy said:
18 January 2012 @ 11:47

4% is what it always should have been. 8% was always a con.


said:
22 January 2012 @ 21:17

Hi everyone,
I agree with Mandy it should have allway's been 4% it's the local Governments who got greedy.


Glyn said:
22 January 2012 @ 21:18

Hi everyone,
I agree with Mandy it should have allway's been 4% it's the local Governments who got greedy.


Graham said:
22 January 2012 @ 22:24

To me 4% still seems high, why isnt it zero rated? In the UK we have zero rates for childrens cloths and food which are basic needs. A place to live in should also be considered a basic need. If the change to 4% is illegal under EU law then we might expect the EU to fine Spain and enforce a collection of the other 4% from owners sometime in the future. Current mood from Northern EU countries is to demand their pound of flesh from southern EU countries, regardless of the hardship on people or impact it has on the local economies.
There are also a lot of properties that were pre-owned and are likely to remain unsold for years while new builds continue to add to the glut of properties. Why not make the IVA 4% for these and zero for new builds? That would help everyone.
Another danger is that since property is valued by the market then builders will simply pocket the 4% difference by inflating their prices by that amount and/or legal services will absorb the 4% in higher fees.
The buyer will also find themselves unable to compete with similar new build properties if they need to sell within a year of purchase without dropping their price by at least 4%, so effectivly loosing money.
The buyer is unlikely to win.


hularocker said:
23 January 2012 @ 19:53

If I was paid four per cent I would not buy property in Spain,better to buy in the UK,or buy a vintage car,or buy gold,anything but throw your money away buying in that hell hole,been there done that. Never ever again,wise up people and leave Spain for the spanish,they deserve it!! Do not say you were not warned.


Property for sale in Spain said:
28 January 2012 @ 11:54

This is fantastic news and should boost the economy, however I feel that this should be reduced across the board to help people who have to sell their property for whatever reason. Before we see anymore building work let's see some of those many resale properties get sold.


Steve Lee said:
19 February 2012 @ 09:15

Hularocker I am sorry that you have had a bad experience in the property market in Spain. However I have bought houses in Spain many times over the last 19 years both in Andalusia and now in Valencia without any problems whatsoever. I am now living in my 7th property here in La Font Den Carros and have no regrets at all. Mind you I have always lived where the Spanish live, not in a foreign enclave.


Only registered users can comment on this blog post. Please Sign In or Register now.




 

This site uses cookies. By continuing to browse you are agreeing to our use of cookies. More information here. x