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.
Thoughts on “Developers lobby Government for mortgage interest tax relief on holiday homes”
Steve Reddy says:
Its not interest tax relief that will bring buyers back to the table, it’s the millions stolen by developers and Spains inadequate property laws that keep buyers away. The government of Spain should pay back every penny owed to investors then sieze the assets of the rogue developers to recoup the money. Only when confidence is restored will buyers return.
Fully agree with Steve, besides if they are not selling than commercial logic sugguest a reduction in price. Did the Developers pay more Taxes when they were selling & pushing prices on a weekly basis.