Do not miss the 6% discount on VAT by not deciding this year

Do not miss the 6% discount on VAT by not deciding this year

In Spain you pay for the transfer of any property by transfer tax or VAT.

2 years ago, the Spanish government reduced VAT on new homes from 8% to 4%. The Spanish housing market had begun to falter and this reduction brought some movement back to the market.

Now this could be rescinded.

2-stage rocket on VAT

You will immediately be faced with a 2-stage rocket on VAT. Firstly, the reduced part of 4% back to the 8% tax rate. The second step is an imminent increase of the 8% rate to 10% just introduced by the government.

That nice touch is an increase of 6%! If you plan to move or already have something in mind, do not wait too long. By 31 December this year, if you haven’t bought you will miss the 6% discount on VAT charges.