Amendments to the Law on the tax on the resale of the property in Valencia and Catalonia attract more buyers of primary real estate, reports ee24.com referring to the Spanish media .
The decision of the Government of Valencia has made it possible to buy a home in the primary market cheaper than in the secondary. Changes in the tax on the transfer of ownership (ITP), which came into force at the beginning of August 2013, increased the amount of the tax from 8% to 10%. The same rule was introduced in Catalonia.
Richard Way, editor of The Overseas Guides Company, explained that the tax on the transfer of ownership (ITP) is not subject to the new buildings, which are subject to VAT and stamp duty, each of which is 10%. Therefore, improving the ITP directly affects the cost of a resale property, which makes it less attractive to foreign investors than the "primary" .
He added that according to statistics provided by the Government of Valencia, about half of the sales for the first three months of 2013 was made by foreign buyers. This is a record for the region.
Studies show that the Costa Blanca is one of the most popular destinations for investment in Spain, and Alicante accounts for 31% of all requests. Malaga is in second place with 15%. Valencia and Murcia attract 6% of the requests .
It seems that the new apartments will be the most popular objects. Now, most buyers are looking for housing in the region of €50,000 - €150,000. In this case, 33% of customers want the two-bedroom home, while 55 % are looking for accommodation with a swimming pool.