The move would help mop up the glut of new holiday-homes on the coast, argue developers.
The G-14 association of Spain’s leading developers says it will ask the Government to introduce mortgage interest tax relief on holiday-homes to stimulate demand and deal with Spain’s problematic over-supply of empty new holiday homes on the coast.
The Government has just reintroduced mortgage interest tax relief on main homes, despite that fact that it favours owner-occupiers at the expense of those who rent, and makes it harder for Spain to reach its stated goal of increasing the rental market. Developers want a similar tax break for holiday-homes.
Some industry voices like Antonio Carroza of Alquiler Seguro – a rental company – have wasted no time in describing the request as “irresponsible”. He believes it is wrong to use public money to subsidise “large developers so they can sell second homes that should never have been built,” he said, quoted in the Spanish press.
In any event the tax relief would only apply to Spanish residents, not foreigners buying holiday-homes in Spain.
The G-14 has also called on the Government to reduce the ITP sales tax on resale properties.