Spain to keep property tax incentives

The Minister of Development, Ana Pastor, asserted today that the Government has no intention of removing tax incentives for homeownership. “They are in effect because this government wanted it” and we do not see us change our minds, she added.

At a breakfast briefing organized by Europa Press, the minister has responded to the question of whether the government will eliminate the tax deduction for home purchase, recovered earlier this year, after the previous socialist government in 2011 removed.

Ana Pastor’s statements go in the opposite go against the suggestions made at the end of May by the European Commission. Brussels called for the elimination of this deduction for properties in Spain and claimed that these deductions helped lead to the burst property bubble that Spain has been suffering from for several years

Facilities for non-residents

Among other matters, the Minister of Development has also said that the government is committed to boosting the rental market via reforms and improvements to the regulatory frame work to give both parties more security and freedom.

The minister also announced that fiscal measures will encourage home buying in Spain by non-residents, in order to attract “the enormous potential” of the international real estate market via more flexibility to the current regulations regarding to real estate investment through under company names.

She also confirmed that in July a plan would be approved titled PITVI that will promote the urban regeneration schemes.

According to data managed by the Ministry of Development, “half of the homes in Spain are over 30 years old,” so the country needs “change, reform and a new model of urban development and sustainable competitiveness.

Andrew Belles

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