VAT cut in half from 8 to 4 percent on new property sales in Spain explained
Many questions have come to us on how this tax cut on new properties for sale in Costa del Sol is working, so we got the the exact terms of the law and to which properties and payments for properties the VAT from 8% to 4% may be applied.
“Government Spokesman and Minister of Development, José Blanco, announced that the Spanish Government has decided to reduce VAT from 8% to 4% on the purchase of new housing, until December 31st 2011.”
These terms have now been confirmed by the tax authorities:
1. 4% VAT will be applied to all part payments made by clients between 20th August and 31st December 2011, no matter when the property was purchased or when it will be handed over.
2. 4% VAT applied to “key in hand” properties paid in full before 31st December 2011.
3. All payments made before 31st December 2011 for properties under construction will only be charged a 4% VAT, therefore if you want to advance you payments to benefit from the VAT reductions, you are welcome to do so.
This represents a saving of €8.000 on the purchase of a €200,000 property.
Bear in mind the time required to choose a property and then to complete is usually 4 to 8 weeks, so anyone interested should start looking now.
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PROPERTY EXPERTS IN COSTA DEL SOL & COSTA BLANCA
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The BEST DEALS never make it to the market, only top agents who have genuine access to distressed, repossessed and discounted properties has them. We do! Our trusted relationship with banks, motivated sellers, developers and partners gives us exclusive access to these properties, and we influence and negotiate the best prices on your behalf.
We can help you with any property request in Costa del Sol and Costa Blanca, you can take advantage of the low prices provided by the government discount on value added tax this year.
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