Spanish Government Cuts Sales Tax on New Homes

House construction in Madrid - copyright BY.YOUR, Creative Commons License


If you’ve been thinking of moving to Spain and buying a home or already live there and want something new, now is the time to buy. On Friday, the Spanish government announced a reduction in the sales tax on new homes, in an attempt to jump the Spanish housing market. The tax was cut from 8 percent to 4 percent

Spain currently has more than 700,000 new home units on the market but with the Spanish economy stagnating few homes are selling. New sales would also help government revenues as, when houses aren’t selling the Spanish government gets nothing. Basically, 4 percent in taxes is better than zero percent.

The tax cut on new home sales though is only in effect until December 31st, 2011,  so you might want to get shopping.