VIVA Internal Mail: Purchase tax on new-build Spanish property developments cut by 50%

From:           Martina Heynemann

To:               Team VIVA

Sent:            Friday, 19/08/2011, 17:30

Subject:       Purchase tax on new-build Spanish property cut by 50%

Hi guys!

I wanted to share this breaking news with you, which so far as I’m aware is unprecedented and an absolutely fantastic opportunity for any of your clients thinking of buying a new-build property here on the Costa del Sol.

In a totally unexpected move the Minister of Development, José Blanco, has today announced that with immediate effect, the IVA tax on all new-build properties in Spain has been reduced from 8% to 4%. This means for example that when a client purchases a property costing €200,000, instead of paying the €16,000 IVA previously in force, the tax bill will now only equate to half that amount – €8,000.

On a sliding scale, a property costing €400,000 will therefore only mean a tax bill of €16,000 instead of €32,000… and so on.  So you don’t need me to tell you that with the money buyers can now save, they could furnish their new home, purchase a car, or maybe even upgrade to a bigger or more lavishly appointed unit.

The government has introduced this temporary initiative – only in force until 31 December 2011 don’t forget – in a bid to kickstart Spain’s stagnant construction industry and reduce dole queues. But for potential buyers, with only four months left in which to cash in, the clock is already ticking…

Martina Heynemann

Managing Partner