Spain raises the VAT as of the 1st of September of 2012. VAT exceptions in the purchase of property will only be valid until the end of the year.
On the 14th of July of 2012 and according to article No. 23 of the official state bulletin, the Spanish government has increased the VAT values as of the 1st of September of 2012 as follows
- General VAT: increased from 18% to 21%
- Reduced VAT: increased from 8% to 10%.
Exclusive new built villa in Puerto Andratx
The especially reduced VAT of 4% for the purchase of newly built properties from promoters (instead of 8%), will remain being valid until the remainder of the year 2012. As of January of 2013, this VAT reduction will no longer be valid and will be applied at a rate of 10%.
Are your interested in purchasing a property in Majorca?
Well then now is the perfect time to do so until the end of the year, as it will save you 6% VAT! In addition, for a future sale, the Spanish Government reduces 50% of income tax. But this applies only until the 31.12. 2012.