By Daniel Hunter
New, key-ready homes on Spain's Costa Blanca are becoming increasingly the more attractive option to foreign buyers, thanks in part to the regional government recently making it more expensive to buy resale property there.
"The regional government of Valencia, home to the Costa Blanca, raised transfer tax (ITP) on resale property to 10 per cent from 8 per cent from the start of this month. The region's northern neighbour, Catalonia, has made the same change," Richard Way, Editor at The Overseas Guides Company said.
"ITP isn't levied on new-build property, but VAT (IVA) is applicable, also currently at 10 per cent (as well as stamp duty). Reports from estate agents are of new projects beginning to come on line in the Costa Blanca, so with resale becoming dearer, brand new key-ready properties will be on the radar of foreign buyers.
"At the same time, recent stats from Valencia's regional government showed that almost half of all property sales in the first three months of 2013 were to foreigners - an unprecedented level and an indication of how valuable the international market is to Spain's property market along its Costas."
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