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Spain halves the IVA / VAT on new property until the end of the year.

News Date: Sunday, August 21, 2011

The Spanish Government has announced it is to reduce the IVA/VAT on new property from 8% to 4% as an emergency measure in force until the end of the year. It comes in an attempt to reactivate the real estate sector, and only applies to new property. It means an average saving to the purchaser of about 8,000 €.

The real estate industry think the idea will help to reactivate a sector punished by the recession, but comment that it will also be necessary to give ‘better access to finance.