The Spanish Government reduces VAT to 4% for the purchase of new housing

Development Minister, José Blanco, has announced the reduction of VAT from 8% to 4% for the purchase of a new home as an extraordinary and temporary step, being valid only until 31st December. This tax was revised up in July last year from 7% to 8%. He also recalled that the real estate transfer tax (ITP) remains as it was like because it is the responsibility of the autonomous communities and the state.