VAT for new Spanish properties reduced to 4%
Wednesday, August 24, 2011
On 19 August 2011 the Spanish Government reduced the rate for VAT on new properties from 8% to 4% in order to help the beleaguered housing market where there are nearly 700,000 unsold new properties. The new measure is effective immediately and expires on 31 December 2011. The measure is being introduced to help kick start the sale of new properties which are mostly in the hands of the banks who have land and property valued at more than 65,000 million euros!
Alex Radford a Solicitor & Abogado with Irwin Mitchell Abogados believes this is a welcome measure from the Spanish Government however Alex commented that “unfortunately this only applies to new properties and should also be extended to resale properties where transfer tax is up to 8% depending on the value of the property purchased. Further with a lack of liquidity and credit available in the market it is unlikely to make real inroads into the unsold housing stock in a little over four months”.
Irwin Mitchell Abogados have an experienced Property Department and offer a complete property service when buying or selling Spanish Property. For more information on the services offered contact Alex Radford at alex.radford@irwinmitchell.es or telephone (+34) 952 209 860.
www.irwinmitchell.es
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