Welcome news from Spain that the new government is to keep its promise ... They will extend the previous government's tax reduction of Spanish VAT (IVA) on the purchase of new properties from 8% to 4% for the whole of 2012.

The initial campaign was to extend this only to those purchases acquired as a main residence, however, the new IVA / VAT legislation mentions no restrictions so Brits buying a holiday home in Spain could well benefit from this tax reduction.

A 4% tax cut on your purchase bill could represent as much as 10,000€ savings that could be far better spent decorating your new property or on a housewarming!

Please do not hesitate to contact our specialist Spanish team for a legal advice in relation to Spanish property matters on 0800 840 4929 or email Spain@pannone.co.uk.