Spain cuts new property tax in half to lift Spanish real estate industry
The reduction in VAT (Spanish - IVA) from eight per cent four per cent on new build Spanish properties came into force on August 19th and will continue until the end of the year.
Announcing the decision Jose Blanco, Minister of Development for Spain, said he hoped the new measures will "revive the construction sector" and "contribute to create employment in the sector most affected by the recession”.
The move comes at a time when the Spanish real estate market is close to rock bottom. Prices are down to around 2005 levels and many banks are offering one hundred per cent mortgages in an effort to attract buyers.
The VAT reduction will mean a saving of up to 8,000 Euros (US$ 11,500) on a 200,000 Euro (US$ 288,420) property.
Some Spanish property developers are going even further, pledging, "No VAT at all" until the end of the year - reducing VAT payments on new property transactions effectively to zero.
The real estate and construction industry in Spain reacted positively to the news:
"This should provide a much needed lift for the Spanish property industry, which has been grappling with massive over-supply in certain areas. Although prime locations such as Marbella, Malaga and Majorca have seen strong demand from northern European buyers and an increase in sales volume over the past twelve months, in many less desirable areas the market continues to struggle.
"Buyers should see this as a positive step by the Spanish Government to get the property market moving again. We have already seen a significant increase in enquiries for Spanish property and we anticipate strong sales over the coming months as buyers hurry to complete on purchases before the end of the year.
“It remains to be seen just how much impact the tax cut will have in less popular areas. However, buyers who have been considering taking the plunge in more popular locations will likely look on this as an opportunity to get an even better deal on their investment.” commented Adam Smith, market analyst for Ocean Villas Group.
Rebecca Smith is a real estate journalist and author with over 15 years’ experience. She has published 3 books to date:
'The Definitive Guide to buying property in Thailand' - http://blog.oceanvillasgroup.com/the-definitive-guide-to-buying-property-in-thailand/
'10 simple ways to slash your marketing costs and sell more property' - http://www.ovgmarketing.com/10-simple-ways-to-slash-your-marketing-costs-and-sell-more-property/
'The Definitive Guide to buying property in Phuket' - http://blog.phuketoceanvillas.com/the-definitive-guide-to-buying-property-in-phuket/
Rebecca is currently the sales director for Ocean Villas Group and Phuket Ocean Villas.
Ocean Villas Group Pte. Ltd.
6 Battery Road,
This release was published on openPR.
Permanent link to this press release:
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.
You can edit or delete your press release Spain cuts new property tax in half to lift Spanish real estate industry here
News-ID: 189259 • Views: 1600
More Releases from Ocean Villas Group Pte. Ltd.
Vera Wang bags Steve Hermann property in Beverley Hills, Los Angeles
Celebrity New York fashion designer Vera Wang has splashed out US$9.2 million on a Steve Hermann designed property in Coldwater Canyon, Beverley Hills, Los Angeles. Hermann bought the 408m2 house in June 2008 for US$5 million. He spent the next two years completely redesigning and renovating the 1967 built property at a cost of US$3 million. Two new bedrooms were added. The ceilings were raised to a height of 3.6 metres. The
Asia Pacific worlds cheapest for building property
The Annual Construction Cost Comparison Report by EC Harris Research has revealed that countries throughout the Asia Pacific region have significantly lower building costs than their counterparts in The West, despite experiencing substantial economic growth. Now in its seventh year, the report compares building costs per square metre in fifty six countries worldwide against construction costs in the South of England. India and Sri Lanka have the lowest construction costs in the
Jade Jagger puts Spanish property up for sale
Spain: The daughter of Rolling Stones frontman Mick Jagger, Jade Jagger, has put her Spanish property up for sale. The seventeenth century farmhouse is located on the North West Coast of the Balearic Island of Ibiza near the village of Sant Joan de Labritja. Dubbed by Jagger as her own “private paradise”, the Spanish property sits on top of a mountain overlooking the Mediterranean Sea. And from its secluded location it’s hard to
Jerry Seinfeld selling Colorado property for US$18.25 million
Jerry Seinfeld, the star and co-creator of hit US television show ‘Seinfeld’, has put his Colorado estate on the property market for US$18.25 million. Nestled in the Rocky Mountains and described as “an evolving series of Western ranch structures”, the twenty six acre property boasts eleven bedrooms and fourteen bathrooms. After he bought the estate, Seinfeld ordered a multi-million dollar renovation and expansion of the property. It now has a separate
More Releases for Spanish
Preparation for Spanish exams
To learn Spanish intensively during one week means living a week full of unforgettable events Valencia. For many students it is no pleasure to think about the final exams. Everything is coming so fast, and you would just prefer to forget all about it. Am I ready for this? When do I need to start to study? Will I still have leisure time? Such questions go through your head, even though
Learning Spanish midst beach and culture
Valencia – a holiday destination which offers everything for a language vacation Valencia. Summer is coming and each year the same question arises: what should the next vacation be like; a vacation full of nature, beach and good weather or a holiday filled with site seeing, culture and monumental variety? This decision is always hard, because everyone should get as much as possible out of the vacation. It should be relaxing
Learning Spanish with children
A Spanish language school in Valencia organizes during Eastern holidays Spanish courses for parents and their children Valencia. The upcoming Eastern holidays offer the whole family the chance to learn the Spanish language. A Spanish school in the centre of Valencia offers the perfect combination for a family holiday: language training for parents and introductory Spanish for children. The parents attend an intensive Spanish course to learn in a short time as
A school of Spanish for foreigners organizes courses of Business Spanish in preparation to the Official Exams of the Chamber of Commerce and Industry of Madrid. Valencia. Knowing a language also means to know specific vocabularies. The aim of most students of Spanish as a foreign language is not only that of improving their fluency, but also that of widening their vocabulary in specific areas that will be useful for finding
The true Spanish for foreigners
A school of Spanish for foreigners offers its students extra-activities and classes: colloquial Spanish and reading clubs. Valencia. It has been proved that studying a language just in class is not enough to learn it. A Student of Spanish as a foreign language needs not only the grammar, but a full everyday immersion into the language in order to learn those expressions that can’t be found in books. It is important to
Workplace Spanish® Introduces “Spanish by the Slice™”
Roswell, GA, February 24, 2010 – Workplace Spanish, Inc., developer of the country’s most widely used Spanish learning materials for the workplace, introduces an economical way for anyone to learn and speak conversational and job-specific Spanish without busting their budget. “Spanish by the Slice™ is a parallel to the pizza business”, says Tom Sutula, president of Workplace Spanish. “With pizza, if you don’t want the whole pie—you order