Feijóo proposes housing aid package for young buyers

Alberto Núñez Feijóo, leader of the People's Party (PP), has presented a housing proposal aimed at assisting individuals under 40 in purchasing their first home. The package, described by the party as “the greatest aid in history,” includes several financial mechanisms designed to lower the barrier to entry for homeownership.

Key components of the proposal include government guarantees for up to 100% of the property price, which would allow buyers to avoid the traditional 20% down payment. Additionally, the plan suggests a 60% reduction in Value Added Tax (VAT) and Property Transfer Tax (ITP). The proposal also includes the option to defer tax payments for the duration of the mortgage.

According to the PP's calculations, for a property valued at 250,000 euros, these measures could result in a 50,000 euro reduction in initial outlays and up to 25,000 euros in tax savings. While the announcement outlines these instruments, a detailed economic memorandum regarding the fiscal cost and legal framework has not yet been published.