Madrid and Andalusia announce tax cuts to aid housing access

Regional governments in Spain are implementing tax relief measures to address housing accessibility. In the Community of Madrid, President Isabel Díaz Ayuso announced tax reductions for individuals under 40. Starting January 1, 2027, the Property Transfer Tax (TPO) for second-hand primary residences will decrease from 6% to 4% for properties under 450,000 euros. Additionally, the Documented Legal Acts Tax (AJD) for new constructions will drop from 0.75% to 0.4%. These measures are expected to save taxpayers approximately 116 million euros annually.

Similarly, in Andalusia, President Juanma Moreno announced a progressive reduction of the Personal Income Tax (IRPF) by one full percentage point through 2027, specifically targeting incomes up to 60,000 euros. The regional government also plans to expand the threshold for reduced Property Transfer Tax (ITP) rates for those under 35, increasing the limit from 150,000 to 200,000 euros to facilitate home ownership.