The Spanish Government announced on Friday new plans to cut the sales tax on new properties in Spain, in a bid to alleviate some of the challenges currently facing the country's property market. The new legislation was one of a number of initiatives announced on Friday as the government seeks to generate growth in Spains ailing economy.

In a bid to stimulate demand for new build properties, the government announced that the sales tax on new properties will now be reduced from 8% to the new rate of 4%. The new legislation was described as 'temporary but necessary' by a Spanish Government spokesman.

The measure is seen as an encouraging sign from the authorities, as they seek ways to instigate growth in the Spanish property market again. It is hoped that these typs of legislative inpetus will have a long term demand led impact leading to increased growth throughout the construction sector.