Press Room New Spanish tax breaks for 2012! 

On the 31st December 2011 , the Spanish Government published the “Real Decreto-Ley 20/2011” (Royal Decree Law) dated 30th December, containing urgent bugetary, tax and financial measures which are needed to correct the Spanish public deficit.

With respect to the housing policy the newly elected Spanish Government will institute, there are a few changes from that anticipated by Mariano Rajoy, Spanish President, during his inaugural speech.  The good news is that the new measures clearly favour those wishing to buy a new home, with steps which include:

· The super-reduced VAT of 4% will be maintained for new home purchases; in other words the conditions of the previous “Real Decreto-ley 9/2011” dated 9th August 2011 has been extended until the 31st December 2012.

· Recovery of the special income tax (IRPR) deduction for first home investment, back-dated to the 1st January 2011.