The Government of Spain has made a number of attempts to support the local real estate market, according to which the global economic crisis that erupted in 2008 greatly hit. Then those who were going to buy real estate in Barcelona or other cities of Spain were completely at a loss, observing the rapid drop in prices for Spanish real estate.
In recent years, Spanish real estate, although slowly, restored its position in the world market. And this year, on August 19, the government made a decision according to which, when buying a new apartment, the new owner pays VAT 2 times less from the amount that should have paid before the decision is adopted. The decree will act before the end of the year. Economists have long drawn the attention of the government to the need to take measures to stimulate the real estate market, and now state minds decided to listen to scientists.
The government’s decision to reduce VAT when buying housing from 8 to 4 % is a half -timer, as it concerns only transactions in the primary market. When buying an apartment in the secondary market, taxes will have to be paid in full. According to the laws of Spain, when buying on the secondary market, the buyer pays not VAT, but the so -called property transfer tax, the amount of which differs in certain regions, as it is established by the regional authorities. Thus, acquiring new buildings in Spain becomes more profitable. With a new tax discount, when buying an apartment, say, € 200 thousand, the amount saved can be up to 8 thousand.
According to the Minister of Development and Infrastructure of Spain Jose Blanco, the government wants to contribute to the growth of activity in the construction sector and increase the number of jobs.
Developers are always of low -optimism of the government not divided by market operators and developers. Such a measure is considered to be insufficient. In 2011, 99 thousand objects were built in Spain, which became the worst indicator over the past 5-6 years. A decrease in VAT for a period of four months will not be able to restore the construction sector to its pre -crisis volumes. According to the President of the Association of Real Estate Builders Jose Manuel Galindo, in order to withdraw that sector from a stupor, it is necessary to relieve the tax sector for one and a half to two years.
To increase the purchasing power, banks will offer new, more affordable lending schemes. Owners of real estate agencies argue that the drop in prices in the primary market will entail a decrease in the cost of housing and the secondary, which is up to 90% of the real estate presented in the proposals of agencies.
