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Good news for investors

September 16, 2011

Good news for all who wish to purchase a new property in Spain.In the second half of August the Spanish government approved abill to reduce the charge VAT (called IVA in Spain) for the purchase of new housing by half – from 8% to 4%. These activities are part of a package of economic measures to reduce the large amount of unsold real estate. Reduction of VAT will apply for four months – so you have to hurry with the purchase.

The ongoing financial crisis has hit hard in the Spanish and the government had taken steps to increase sales of new homesacross the country. The real estate sector remains stagnant since 2007, causing the massive discounts banks offer mortgages withup to 100%. Potential buyers only pay taxes and expenses, which amount to a total of approximately 12% of the purchase price. Reduction of IVA (VAT equivalent) of field is a wonderfuland unexpected gift for potential property buyers.

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From → Real Estate

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