Zapatero’s government announced several economic measures, together with the Wealth Tax abolition we indicated last week.
Do we know how these measures may stimulate the economy and encourage more foreign investment? This is to be seen when the announcements are translated into statutes.
We believe it is encouraging, to say the less. The statutes and rules will be detailed over the next months and we should continue commenting on those:
• Abolition of the annual charge for Wealth Tax, as we announced in our last post.
• A new deduction for earned income, including pensions, equal to 0.9% of the
net family disposable income.
• Improved tax treatment for refurbishment of buildings.
• Improved system for repayment of VAT
• Greater flexibility for mortgage borrowers to renegotiate the term of the loans, and a reduction in fees and costs associated
• Improved tax treatment for non residents who invest in public debt