MALAGA GAZETTE

Friday, August 19, 2011

Spain cuts property tax to try to boost growth


Friday, August 19, 2011 |

Spain has announced plans to try to tackle the severe problems facing its housing market.

The government will temporarily halve the sales tax on new homes to 4% to try to stimulate its construction sector.

Spain's economy was plunged into recession following the collapse of its once-buoyant property sector.

The government is also hoping that new building projects would help create jobs and alleviate unemployment, which is one of the highest in the eurozone.

It is one of a number of measures agreed at a cabinet meeting, designed to boost Spain's weak economic growth rate and generate revenue to help it cut its deficit.

 


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