2% VAT increase announced

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This topic contains 5 replies, has 5 voices, and was last updated by Profile photo of Arthur Stuttard Arthur Stuttard 7 years, 2 months ago.

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  • #55199
    Profile photo of Anonymous
    Anonymous
    Participant

    Does anybody have an insight as to whether the 2% increase in VAT will also apply to property transactions ?

  • #94151
    Profile photo of Anonymous
    Anonymous
    Participant

    @Lex wrote:

    Does anybody have an insight as to whether the 2% increase in VAT will also apply to property transactions ?

    Any increase in VAT will be only for new properties, residential 7%-commercial 16%.

    On the other side, second hand properties have the 7% ITP (Conveyance Tax) unless the Regions or the State decide to increase this last tax as well.

    Additionally, new properties also must pay a 1% as AJD.

  • #94161
    Profile photo of Anonymous
    Anonymous
    Participant

    and when is it likely to be applied to purchase of new properties – does anyone know?

    Thanks,

    LG

  • #94162
    Profile photo of Anonymous
    Anonymous
    Participant

    @lonegroover wrote:

    and when is it likely to be applied to purchase of new properties – does anyone know?

    Thanks,

    LG

    At this stage it is difficult to guess which the government’s final decision will be… but unfortunately, these type of changes are usually decided with a very short time to be compulsory. Some experts hardly believe a 2% increase related to property purchases to be possible.

  • #94164
    Profile photo of Anonymous
    Anonymous
    Participant

    “Any increase in VAT will be only for new properties, residential 7%-commercial 16%. “

    so, where is the change. This has always been the case.

    “On the other side, second hand properties have the 7% ITP (Conveyance Tax) unless the Regions or the State decide to increase this last tax as well”.

    This was also the rate. The tax may have been called with another name.

    “Additionally, new properties also must pay a 1% as AJD.”

    What does AJD stands for ???

    I take it that these percentage is due irrespective if the property is legal or not !!!!!!!!

  • #94170
    Profile photo of Arthur Stuttard
    Arthur Stuttard
    Participant

    We’re told that the rise will not apply to the Canary Islands.

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