Spanish Government

On January 1, 2011 will be effective the end of the tax deduction for home purchase had been implemented in Spain during the past years, leaving a small residual glimmer for less than 24,000 euros gross annual income. To the tax deduction for home purchase the Spanish Government intends to continue with the austerity plan that has been marked, or that have marked him from the markets, to reduce the public deficit as soon as possible, thus avoiding a bailout like Greece or Ireland. In this sense, one of the major objectives set by the Spanish Executive to the tax deduction for home purchase is restructure the Spanish production model, abandoning the construction and betting on sectors with higher productivity and added value, thus allowing some immunity to international crises. Is true that during the years that the tax has been in force, the cultural trend toward the purchase of the Spanish people has been condone exponentially, marginalising the rent as a transitional measure towards the purchase. While many analysts agreed that the end of the tax deduction for home purchase would be an incentive to purchase in the last months of the year 2010, in the image and likeness of what happened with the increase in VAT in July of the same year, the data are showing a serious stagnation in real estate transactions in Spain.

On the other hand, this end of the tax deduction for home purchase has not been without controversy by abrupt modification of the rules of the game. Especially in what refers to housing savings account, hired four years after views and whose amounts contributed were receiving the same relief payments of mortgages, but who now are in the position to buy a home before the end of the year or be condemned to having to return all perceived previously. In short, a measure with some economic logic, but that has been taken with too much urgency before the pressure of the markets. Original author and source of the article


View all posts by