The Spanish Government has announced that it will maintain the reduction of 4% VAT on the purchase of new homes, as announced by Vice President Soraya Saenz de Santamaria in the press after the Council of Ministers meeting.
The Council of Ministers has agreed to keep the tax at 4% during 2012, as the cuts agreed by the previous government was only valid until December 31.
On 19 August, the Council of Ministers of the Zapatero government agreed to cut the 8 to 4% VAT on new home purchases (regular or not) to output the stock of unsold homes (687 523 units at the end 2010) and revive the sector.
The government of Jose Luis Rodriguez Zapatero took this as a year after the tax increase from 7 to 8%.
