The rate of property sales tax will increase in the New Year in some cases as much as 50 percent. The Spanish tax authorities have given the green light to councils to raise the rate of tax in some circumstances from January 1, 2023.
Anyone who bought a home between 2016 and 2018 and decides to sell it in 2023 will pay more tax than a person who bought a home at an earlier date, according to Spanish media reports. The property tax is levied on the time a person has owned the house and it is paid directly to the councils and is therefore an important form of revenue. The tax is basically a levy on the increase in the value of the land during time of ownership.
The real estate and construction sector has slammed the move claiming that it might make people think twice about buying a home.
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Ulla JacksonGovernments and coherent thought, Now that is an interesting observation Ulla. I don’t see that process in any western governments at the moment. More desperate and grasping. The Keynesian limit has been reached and the never ending taxation driven by unsustainable government spending is tipped certainly the U.K. and other economies.
It's no surprise really, EU bailout money wasn't a hand out. Mist have not realised as of yet.....its to be paid back!!!
David HollandI totally agreeing. How in any way will this benefit the locals buying properties? I agreeing less properties will be up for sale. It seems that thinking in a coherent way seems to elude the government totally.
David HollandThe construction industry will be over the moon🙄
At a time when there is apparently a shortage of affordable properties on the island. Would this sales tax not deter and limit the property coming to the market , and that, that does be at a increased price to cover this tax loss penalty..further disadvantaging the young. Just seem counter intuitive, except of course for increased council income , which may not necessarily occur if property sales are deterred ..