Spanish Government reduces capital gains tax on second homes by 50pc.

The Spanish government has introduced more measures to try to stimulate sales of second homes in Spain.

Buying a second home or investment property in Spain between now and the end of the year will allow you to benefit from a 50% reduction in capital gains taxes when you come to sell, thanks to a new measure announced by Ana Pastor, head of the Ministry of Public Works, which also includes the Housing Department.

The tax break applies to individuals and companies, but does not apply to sales between parents and their children. Also it does not affect primary residences, which already benefit from a reduction of 100% in the capital gains tax (which obviously only benefits residents).

The measure is clearly aimed at investors and holiday home buyers, who will benefit from paying 50% less in capital gains when they come to sell, but only upon property purchased this year (2012).