Tax breaks for Brits in Eur 20B Spain package

As the UK's McBrown crew gets back from the seaside to stop the nation's economy sinking beneath sunami waves, Brits abroad are already benefitting from anti-inflation tax breaks produced by the Spanish government - and Brits planning to move to Spain can grab theirs right away.

It seems there is no mañana where the rescue of the Spanish economy is concerned...

Expatriates in Spain benefit from a raft of new measures which include the abolition of wealth tax and inheritance tax as part of a package of 24 incentives to boost the country’s flagging economy.

While Prime Minister, McBrown schemed in Suffolk, Prime Minister Jose Luis Rodriguez Zapatero left his Costs holiday and announced the €20 billion (£15bn) plan after an emergency meeting with ministers.

One of the key measures is a bid to increase consumer spending with a €400 tax rebate to 16 million workers and retirees. Others include abolishing inheritance tax and opening up the service sector to be more like Britain.

There will also be more money for subsidised housing to boost the construction industry, cuts in bureaucracy to aid small and medium-sized businesses and speedier approval of new public works.

The abolition of wealth tax fulfils one of the Socialist party’s pre-election promises from 2004. Wealth tax will no longer be levied on any property purchased after January 2008, regardless of residency.

The move comes as Spain’s GDP growth slows dramatically, a trend which is set to continue in 2008 and 2009, before a predicted 3% rise in 2010 - according to government figures. Inflation rose 0.3% in July to 5.3%, the fastest annual rate for 15 years. It is well above the eurozone average rate of 4.1%. However, Pedro Solbes, the Spanish economy minister, said that inflation could fall to 4% by the end of the year if oil prices continue to come down.

Prospects for property buyers in Spain? Grab the developer discounts, Spanish bank repossessions, Senor Z's tax breaks, have a great time in the sunshine and check back on Britain after the next election....