Wednesday, May 3, 2017
Legal News
The importance of fiscal incentives to boost the real estate sector
After a decade in red, the sector already accumulates two exercises with timidly positive data. For experts, 2017 will be the year of consolidation of the recovery of the real estate sector but on the table a key factor: the introduction of tax incentives from different agents involved.According to the book Housing: Taxes and other fiscal policies, recently published by the Foundation Taxes and Competitiveness in collaboration with the Association of Constructive Promoters of Spain (APCE), tax incentives are more than necessary to consolidate the recovery of the Spanish real estate sector.A sector that according to data from the General Council of Notaries will sell around 450,000 homes in 2017 with a price increase of 3% per year, and even 5% in areas such as Madrid, Barcelona, ??some points on the Costa del Sol and Islands, especially in the Balearics. But what do we do to ensure that these figures are consolidated and are nothing more than a bubble with the possibility of dissipating in the coming months? The important in the introduction of tax incentives is essential.Incentives in housing acquisition and rehabilitation operations. That yes, in moderation and that they are measures with expiration date. And is that, according to said book, the objectives of these incentives must address three main points:The reactivation of the construction sector.Urban rehabilitation and regeneration.Improving energy efficiency.The deductions in this sense are the best choice since, although they imply a lower income in taxes, they also carry a lower management expense than that commonly associated with subsidies and direct aids.Deductions to housing: the keysHow to apply these types of deductions that greatly favor the real estate sector? First they have a validity of between 6 and 10 years in time. And second, offer a double chance.On the one hand, take into account those households where a work has been done in the home to improve the energy efficiency of the same and therefore a deduction of a percentage of the amount invested.And, on the other hand, introduce a major tax incentive to the purchase of energy class A or B housing. As an example, the Italian case where the deduction in the IRPF of 50% of the VAT paid by the buyer of that type of housing is a " "To the real estate sector and is in line with the objectives of the European Union.Of course, this book puts special emphasis on that not only the changes have to be in the introduction of new incentives. The elimination of aid and direct subsidies aimed at facilitating access to credit and the need to change an economic policy that leads to a change in the relationship between public authorities and the construction industry are becoming issues Important for the future of the sector.

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