Two housing experts call for tax reductions on young people's first homes

The VAT on new homes has been at 10% since 2012 and the ITP is calculated per titleholder based on age and region. Two experts are calling for lower taxes on the first home.

The VAT on new construction homes has been at 10% since 2012, according to mortgage expert Montse Cespedosa, who identifies it as one of the biggest obstacles for young people buying their first home. The information, reported by The Objective, includes a video posted by the expert on her Instagram profile, where she recalls that the rate was 7% in 2007 and 8% in 2010.

Cespedosa argues that thousands of families spend years saving just to pay taxes. In her opinion, the purchase of second homes, real estate investments, or tourist rentals are well taxed, but she calls for a reduction for the purchase of a primary residence, regardless of the buyer's age.

“Thousands of families spend years saving just to pay taxes”

In another video, the expert explains that the ITP is individual per titleholder for second-hand purchases and its amount depends on age, the autonomous community, and the general taxable base. She gives the example of a home worth 300,000 euros in Catalonia purchased by a couple, where one titleholder is under 35 years old and earns 35,000 euros, and the other is 39 years old and earns 45,000 euros. According to her calculations, the total ITP would decrease from 30,000 euros to 22,500 euros, with the 5% applied to the young titleholder on their half.