Foreign companies that own real estate in Spain are exempt from the tax, which currently stands at 3% of the purchase price. The relevant law is under consideration in the Senate. The changes will not consider companies registered in offshore countries.
The new bill was part of the national program of the country for attracting foreign investors.
Existing tax was introduced in order to reduce the popularity of buying real estate in Spain by foreign companies. The entities that own the object which cost was, for example, 1 million euro, had to pay an annual tax of 30 thousand euro.
State's intention to cancel an existing tax associated with a significant reduction in demand for housing. The authorities have taken various measures to attract foreign buyers in Spain. In addition to the reduce of tax for foreign companies owning property in Spain, the government plans to provide residence permits to all foreign buyers who purchase property in the country in the amount of 160 thousand euro.