Spanish Property to Benefit Hugely from Tax Cuts

The Spanish Government has cut IVA (sales tax) on newly constructed property to 4% in an effort to spur sales of new builds and re-ignite the Spanish construction sector

The Spanish government have set in place a number of new measures that is set to continue the stabilisation of the economy, as well as benefit those who need a break from the financial toughness, whilst drawing extra money out of the more affluent in the country.

As a result of plans agreed on Friday, a number of larger companies will be forced to pay tax earlier, which will bring in an extra 2.5 billion euro in funding. Those companies may not appreciate the move as they will no longer be able to draw off the interest earned on that money, but it is a much better arrangement for the country.

In addition to that, health authorities will be forced to buy generic medications, which are often considerably cheaper than branded products, but rarely of inferior quality. Another move that will no doubt be unpopular with the high earning pharmaceutical companies, but yielding yet another saving of some 2.4 billion euro this year alone.

As for the individual, one of the biggest and most attractive agreements has been the slashing of tax on property, halving the current 8% fee to a mere 4%, which will result in savings of thousands if not tens of thousands on the sale of a Spanish property.

With many properties still available in Spain, following the collapse of the market some years ago, this move has now opened the door for wise investors to snap up a bargain, whilst Spanish property prices are at an almost all time, and now with the chance to benefit from the tax man, there has not been such an ideal time to buy Spanish property as now, especially given the great deals on financing offered by banks, the future is once more looking bright for the Spanish property market.

Spanish Property
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