Re: Re: VAT 10 % on new propertys?


It seems to me that the government is shooting itself in the foot with these changes. The theory is to raise more tax revenue for the governments coffers, but these measures may well reduce revenue.

If the maximum duration in Spain is 90 days to avoid becoming a fiscal resident, then I assume there will be lots of lost revenue from people who no longer spend 4/5/6 months a year in the country. During that time people are eating/drinking/paying utilities/driving(paying tolls and fuel). Additionally there will be benefits to the local economy and employment for people in the service industry.

As for increasing taxation on new property, that should make sure the housing/banking crisis continues for a while longer.