Thursday, April 30, 2009

Sorting the Spanish property market

There is one main way to rescue the Spanish property market and stimulate the whole economy as a result ;

Reform the expensive taxes and ridiculous purchase process

7% transfer tax, stamp duty, 1% here, 1% there, etc etc

Before you know it, purchasing with a mortgage is costing about 14% on top of the purchase price

Banks won't finance the purchase costs because they don't form part of the purchase price and aren't inherent in the value of the property

The Hacienda is collecting no taxes at the moment because the market is dead

So knock 6% off the transfer tax. Reduce stamp duty and notary fees and all the other shite

In fact, reform the notarial process, which is a complete waste of time, as all the dodgy fraudulent business that has gone on in Spain has all passed under the nose of a notary at some point in time. Who are they protecting ?

Without all the stupid costs there will be a much more fluid market when it comes to buying and selling in Spain

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