Suggestions made to boost Spanish property market

Several real estate experts in Spain have made suggestions about how the new government can boost the country's property sector.

Founding partner of Menorca-based agency Bonnin Sanso Colin Guanaria told A Place in the Sun that changes to taxation is the way forward.

In an interview with the publication, he recommended that the government should "dramatically reduce taxes for the building and housing sector, including the property sales tax".

Mr Guanaria added that stimulating tourism across the nation could also help its real estate market recover.

Chris Mercer, from Murcia-based estate agency Mercers, highlighted the need to embark on a public relations (PR) exercise to ease concerns about purchasing a Spanish property.

"What is needed is a major PR campaign to win back the doubters, which needs to show real figures for what is happening on the ground," he told the publication.

The previous government cut the value-added tax payable on new-build houses in the nation by 50 per cent in a bid to boost the real estate market.

Buyers can take advantage of the reduction until December 31st 2011, when the tax will revert back to its previous level of eight per cent.