Those considering buying real estate in Spain are being reminded that time is running out to take advantage of a tax deduction.

Taylor Wimpey Espana is offering VAT of just four per cent on properties in several locations throughout Spain, which will enable buyers to qualify for half future Capital Gains Tax until the end of 2012.

Due to falling property prices and the strength of the pound against the euro, Britons are increasingly choosing to invest money in Spanish property. These conditions have also served to make real estate in the country accessible to a wider range of people, who previously would not have been able to afford property.

According to Marc Pritchard, sales and marketing manager at Taylor Wimpey Espana, 53 per cent of the company's property sales in November were made to UK clients. This marks the most sales made in a month to buyers from the UK since September 2011, signifying a possible market upswing and the return of investor confidence.

"It is not surprising for Spain to see the increase in foreign spending, and especially this year, as the country's tourism sector is experiencing an influx of vacationers," Mr Pritchard said. "These tourists are known to visit Spain mainly to improve their knowledge of the nation's property market before deciding to invest in it.

"The decline in real estate prices in some of the serene areas of the country has seen an influx of interest from foreign investors as more and more people believe that this is the best time to purchase a holiday home in Spain, and that too for incredibly cheap prices."

However, it isn't just Britons who are set to take advantage of the current Spanish economic climate, with the government targeting Russian and Chinese investors, the Global Property Guide reported.

Spanish trade minister Jaime Garcia-Legaz told the Times that foreign buyers will be given residency permits in Spain when buying property over €160,000 (£129,172 approx).



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