Spain Slashes Tax to Boost Property Market
23 August 2011
The Spanish government has recently announced it will halve the property tax, and hopefully this will boost the housing market. The reduction will be applicable on new build homes until the end of the year, cutting the tax from 8% to 4%, and it is already proving to be a popular move, especially on the Costa del Sol where there are a number of developments currently under construction.
The move is designed to help revive the construction industry, and will hopefully create employment in the housing sector which was very badly affected by the recession.
In spite of Spain's high level of national debt, the government remains optimistic about the country's future, and is committed to reducing the deficit with a strict programme of austerity measures, even though these are affecting the recovery from the recession. It also feels certain that investors will return to the country which has always been popular with second home buyers. The Spanish government plans to continue going forward with its austerity measures and reforms, and hopes this latest move will help aid a faster recovery by making new build property more affordable. Anyone wanting to take advantage of this tax cut will need to be quick, and the property market here is expected to enjoy a boost, at least until the end of the year.
The Spanish economy had been expected to grow by 1.3% this year, and the government is still hopeful of meeting this target even though growth in France and Germany has ground to a halt, affecting Spain's exports.