In the first quarter of 2009, proceeds from the property transfer tax dropped by 0.7 billion euro, a decline by 30 percent relative to the fourth quarter of 2008. Proceeds have declined for more than a year now. Since the fourth quarter of last year, proceeds have declined dramatically. The decline is caused by a reduction in the number of home sales and falling prices for residential property.
In 2007, proceeds from the property transfer tax still varied around 1.2 billion euro on a quarterly basis.
Proceeds property transfer tax
VAT proceeds down on account of economic crunch
Since the end of last year, total tax proceeds received by the government have also been reduced. Taxes related to production and consumption appear to be particularly sensitive to the effects of the recession, in particular VAT. The reduction in public spending has had a downward effect of approximately 5 percent on VAT proceeds for the second quarter in a row.