The Council Announces a 10% Reduction in the Property Transfer Tax

The Valencian Government continues with its fiscal project with new tax reductions in the region. Following an initial package last year (which included, among others, Inheritance and Donations), for the 2024 Income Tax campaign, deductions have been expanded. The next goal is to facilitate the buying and selling of homes and try to reduce their price by removing levies on transactions. Thus, the President of the Council, Carlos Mazón, announced this Friday in Alicante that, in the upcoming budgets, "we will approve a 10% reduction in the Property Transfer Tax for all citizens of the Valencian Community."

The head of the Council stated that "the ITP will decrease linearly for everyone after the special reductions we have allocated to young people and vulnerable groups." He further expressed that "the Valencian Community will no longer have the most expensive housing tax in Spain." Additionally, he conveyed that "we will lower the Documented Legal Acts Tax to make all costs and expenses generated by acquiring a home affordable."

To complement the housing policy, Mazón recalled the launch of the line of guarantees so that young people between 18 and 45 years old can access loans of up to 95% of the value of their first home.

In this regard, he pointed out that the first year of the reduction of the Property Transfer Tax from 8% to 6% for young people and vulnerable individuals promoted by the government of change "has allowed more than 21,000 young people to access their first home" with savings of 27.8 million euros, while also stating that "more than 1,000 young people" have benefited from the public guarantees of the IVF (Valencian Institute of Finance).

In this regard, he highlighted that the Valencian government in 2024 "has tendered more than 1,200 protected homes of the Plan Vive in the Valencian Community, of which 191 are located in the municipality of Alicante, and in 2025 it is planned to execute more than 2,000 on public lands throughout our territory."

Furthermore, he announced that "in the coming months we will have completed the provision of more than 600 social homes in different formats only in the city of Alicante, because we started from zero." Additionally, he conveyed that "we have already tendered another 7 lots for 119 homes that will have a 40% reservation for young people."