08 April 2008
Spain's government has been praised for its recent decision to reduce the size of capital gains tax (CGT) payments.
British newspaper the Telegraph said the country is currently the most popular location among foreign property buyers in the UK.
According to the publication, the lowering of the CGT rate from 35 per cent to 18 per cent has helped to enhance its appeal even further.
The newspaper described the move as a "further incentive" to invest in the country, where about 800,000 Britons already own a property.
Commenting on this development, the Telegraph said: "For anyone considering investing in a home on the Costas, this is a welcome change."
The media outlet added that this is good news for a market which has recently been hit by negative publicity.
According to figures from Holiday-Rentals, almost a third of the British-owned properties in Europe are in Spanish towns and cities.
