The leader of the Popular Party, Alberto Núñez Feijóo, announced this Sunday a reduction of the Property Transfer Tax (ITP), which taxes second-hand properties, to 4% with the aim of lowering the price of housing by 30% per 75 years. With this formula, which proposes developing affordable land with the support of private developers, the popular ones aim to accelerate the incorporation of feasible rental housing into the market and extend the Plan Vive model, whose viability has been made clear, at the national level. Once the period has ended, however, the promotions will return to public assets.
This was stated by the leader of the Popular Party in front of the leadership of his party during the Declaration of Asturias which, among other issues, sought to provide a solution to the current latent housing crisis. It should be noted that, although many autonomous communities already had this tax below 10% – such as the case of Madrid, which had it at 6% -, none of them had experienced this reduction, which will mean for a home of 200,000 a savings of more than 12,000 euros.
The PP’s proposals to solve the housing crisis involve, however, the adoption of a dozen measures that include support for young people and legal security in the event of non-payment for the owners. Regarding this, precisely, the popular ones have proposed the eviction of the ‘squatters’ within a period of 24 hours, as stated in their bill, still pending confirmation in the Congress of Deputies.
Young people, for their part, will also be the great beneficiaries of the popular approach. With the aim of facilitating access to protected rent for those individuals in a situation of economic vulnerability, in the Autonomous Communities where the party led by Feijóo governs, the salary requirement will be reduced from 1,800 euros of monthly income to 1,080 euros, that is, a decrease of 40%.
This reduction, however, will be added to other tax cuts to “favor access to a first home” and thus encourage the availability of empty homes: “We pay between 15% and 20% in taxes,” he assured. These include a personal income tax deduction for those owners who make properties available for rent that have been unused for at least two years. In this way, the tax reduction will affect both buyers and landlords as well as tenants.
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