Spain looks to hit tax dodgers
Practice of paying for part of a house in cash will be frustrated by new laws, according to reports
Spain has introduced rules to prevent the historic practice of paying for
large chunks of property in cash to evade tax.
Legislation shortly to come into force will mean that individuals will no
longer be able to pay for a portion of properties they buy in cash, The
Times reports.
The Spanish government is keen to crack down on the practice, and has
introduced new tax identification numbers on all property documents in an
attempt to stamp it out.
The practice will be familiar to many British people who have bought houses
in the country, the paper reports. It is likely they will be affected by the
crackdown, as the government seeks to claim back tax on the cash portion of
their purchases.