As the global credit crunch tightens its grip the Spanish government have introduced a series of tax changes aimed at re vitalising the Spanish Economy.

Pedro Solbes, the Spanish Government Minister for the Economy, announced a number of reforms and new measures as part of wide ranging scheme, the headlines have been grabbed by the planned rebate on workers personal income tax worth up to 400 Euros per month, a total of 16.4 million employees and self employed workers, including ex-pats, will benefit.

The rebate scheme will be introduced progressively, between June and December.

Other changes of note effect Spanish Mortgages, which allows the term of a mortgage to be extended which means from next month the average mortgage of 150,000 Euro would become 50 Euro a month cheaper, however, the scheme does not apply for the purchase of holiday homes.

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