Juanma Moreno has announced the expansion of the maximum housing price that allows access to the deduction in the property transfer tax. The measure aims to alleviate the tax burden for young people and families with fewer resources, raising the threshold of property value that can benefit from this bonus in Andalusia.
How the new tax limit on the ITP works 🏠
The ITP taxes the purchase of second-hand homes. With this expansion, the regional government raises the maximum price to apply the deduction, which can reach up to 150,000 euros. The tax return is filed using form 600, and the buyer must prove compliance with requirements such as age or income. The measure implies an adjustment in the calculation of tax savings, which varies depending on the value of the property and the tax base.
The deduction that doesn't even cover the garage rent 😅
Raising the limit for the deduction sounds good, but in practice, the tax savings look more like a coffee voucher than help to buy a home. With current prices, one can deduct just enough to cover the cost of a move, provided the apartment is not on the beach. Meanwhile, young people continue dreaming of a mortgage that doesn't require selling a kidney. Ironies of bureaucracy.