News / Real Estate
The Spanish Government continue with the VAT ‘superreduction’ on the purchase of newly-built properties
The Government announced that the reduction from 8% to 4% VAT on the purchase of newly-built properties approved on August 2011 will still be applicable during 2012. Property developers and estate agents agree that the continuation of this measure will beneficial in stimulating the Balearic real estate market.
Another measure announced by the new Government is that all salaries will be included in the VAT reduction, not only those which are lower than 24.000 €, as was limited by the previous Government during their legislation. This change will benefit most of Balearic real estate agencies, specially those who count on those clients who have higher salaries with a view to purchasing luxury properties.