Tax advantages when buying a house in 2012
Today we bring you some information regarding recent changes in Spanish legislation affecting home ownership. These new laws published by the government of Spain in the BOE (Official State Gazette) No. 168, Saturday July 14, 2012, will be in force from 1 January 2013.
Among the new measures we can mention:
* Elimination of tax deduction for purchase of main residences in 2013
* Increase of VAT in 2% on housing and end of the Super-reduced VAT, so that in 2013 the VAT rate will go from 4 to 10%.
These changes in the legislation mean that all those who purchase their home in 2012 instead of 2013 will save at medium term about from 10 to 20%. If we only take into account the tax savings we can say that buying a new home in 2012 represents a savings of 6% compared to 2013 prices.
Another factor to consider if you are planning to buy a home in 2012 is that EURIBOR mortgage reference index is at its historic lows (around 1.1%), so those who buy now and formalize a mortgage may get that low interest rate before the likely rise in spreads.
The resale home market is VAT exempt, but it is taxable at about 7% for transfer regional fees tax, so this can be a good reason for selling new building units, since the regions have a high rate of debt and might increases the taxes.