News / Real Estate
The VAT reduction will encourage the buying and selling of newly built properties
Last Friday 19th August the Spanish Government announced a reduction from 8% to 4% VAT on the purchase of newly-built apartments and houses. This measure applies to sales taking place before the 31st December and is a major incentive for prospective buyers. The aim is to stimulate the Balearic real estate market.
Property developers and estate agents agree that the VAT reduction is beneficial for the sector’s recovery, but it also strongly depends on the banks ability to grant credits on properties not only owned by their institutions. On the other hand, a legal uncertainty has been created due to the fact that on the 20th November general elections will take place in Spain and it is unlikely that the new government will continue this action in 2012.