The Community of Madrid defends its 11 approved tax cuts and two announced for 2027, while Congress rejects lowering the VAT on new housing from 10% to 4%.
During the government control session, the Minister of Economy, Finance and Employment, Rocío Albert, defended the tax cuts of the Community of Madrid for home purchases, as reported by madridpress.com. She was responding to a question from Vox about whether the region plans to lower or subsidise taxes on the purchase of the first primary residence.
Albert announced two new tax cuts that will come into effect in 2027. Young people under 40 years old will pay 4% on property transfers instead of 6%, and the rate for documented legal acts will drop from 0.75% to 0.4% for the purchase of new housing.
“for a house costing 300,000 euros, you save 6,000 euros”
With that calculation, the minister estimates a saving of 6,000 euros on a 300,000 euro home for young people buying for the first time.
In contrast to these regional measures, the Spanish government, formed by PSOE and Sumar, rejects in Congress lowering the VAT on new housing purchases from 10% to 4%, something that the PP is demanding. Albert criticised this rejection and described two laws approved by PSOE and Sumar with the dissolved Cortes as “decretazos”.
For her part, Vox deputy Beatriz Tejero stated that in the purchase of a new home, more than 78,000 euros are allocated to taxes and fees, such as urban planning fees or crane fees, documented legal acts, or property transfers. Tejero pointed out that a large part of these taxes depends on the Community of Madrid and called for their elimination.
“We are clear that this money should come from the Public Administration's coffers”
The two cuts announced by the Community of Madrid will be applied starting in 2027, according to the minister's information.
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