The Latest Spanish Property News from Kyero.com

Investors in Spanish property anticipate a range of benefits as part of a plan to revitalise the economy.

As part of an 11-part plan to boost the Spanish economy, tax breaks are to be given when the cost of renovating a property more than a quarter of its purchase price.

The government has also promised to speed up the way public works are put out to tender and contracts completed, in an effort to revive the construction industry.

In addition, there will be the option of extending mortgages on primary residences for an additional two-year period with no added fees, and 150,000 state-subsidised houses are to be built annually with an emphasis on energy efficiency.

To encourage consumer spending further, Spain’s economy minister Pedro Solbes has proposed a €400-rebate on workers’ personal income tax. A total of 16.4 million employees and self-employed workers, including expats, will receive a rebate of up to €400, dependant on salary. Furthermore, small and medium-sized businesses are to be permitted to apply for monthly rather annual than VAT refunds from 2009, in an effort to enable them to increase their investment activities.

The move that’s likely to make the most difference to British expats is the abolition of Wealth Tax, which will be paid in respect of the year 2007 for the last time.

These announcements provide foreign investors and residents with more incentives to invest in Spain than ever.

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