News on the Spanish property market

November 2009 - Tax increases to affect property purchases

The cost of buying property in Spain will go up under new plans by the Spanish government to raise additional tax. The cost of arranging a mortgage on a new home is set to increase by an average of 2,000 euros. And from July 1st 2010, VAT (IVA) rates in Spain are set to increase, affecting legal bills amongst other things. The top rate is to increase from 16% to 18% while the medium rate which applies to food, transport and property will rise from 7% to 8%.