Business

Spain cuts tax on purchases of new homes

BOLSTERING GROWTH: SPAIN LOWERED taxes on new home purchases while approving cuts to health spending in a bid to convince investors the country can bolster economic growth and reduce its budget deficit.

Value-added tax on purchases of new homes will be cut to 4 per cent from 8 per cent until the end of the year, said development minister Jose Blanco, whose ministry estimates there are 700,000 unsold homes left over from the housing boom.

The cabinet also passed a decree to bring forward corporate tax payments, worth €2.5 billion this year.

Full story: Spain cuts tax on purchases of new homes – The Irish Times – Sat, Aug 20, 2011.