Tax increases due soon

[Ian]

The Spanish government is set to increase everyday living costs across Spain with and increase in the rate of VAT (know locally as IVA).

A 2% increase from the current 16% to 18% would bring in an extra 6 billion Euros per year for the government, as it hopes to fill some of financial holes created in trying to get Spain out of recession. The Government says that most EU countries are closer to 20% and Spain has seen vat at lower rates than most countries.

There is also talk of a 2% increase in capital gains tax, from 18% to 20%. This tax is if you sell a property you then have to pay the tax on the increase in the value. Not many properties have that increase in the current climate do they....!