VAT for residential properties to rise to 10% on January 1

Battle of euphemisms

MADRID A rise in IVA/VAT came into effect on September 1, but it did not then include residential property at the full 21% rate, and it still doesn't. However, it was confirmed last week by Finance Minister Cristóbal Montoro, that new-build properties will carry a 10% VAT rate from January 1, 2013, up from the present 4%. This current rate, you will remember, is a 'temporary' measure that lasts until the end of this year - therefore, it rises by 6 points. In a battle of euphemisms, the 10% can still be called a 'reduced' rate because it isn't at the full 21% of 'regular' VAT rates. But, is your home affected by the new rate? COMING SOON: SUBSCRIPTION INFORMATION>>>

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