The President of the Balearic Government, Marga Prohens, announced today in the Balearic parliament an ambitious package of measures to facilitate access to housing, including a set of tax measures to abolish regional taxes for anyone under the age of 35 buying their first home. In addition, funds from the tourist tax will be allocated.
Specifically, the Transfer Tax and the Stamp Duty will be abolished for everyone under the age of 36 and for people with disabilities. Furthermore, these taxes will be halved for people aged between 36 and 40.
Another tax relief measure announced by Prohens is a 50 per cent rebate on Stamp Duty for those under 36 and people with disabilities on mortgage loans, subject, of course, to the tax saving resulting in a saving on the mortgage itself.
The president has also announced a new regional income tax deduction for young people’s savings accounts set up for the purchase of their first home. Funding for public guarantees under the ‘Nueva Hipoteca Joven’ scheme will also be increased from 30 to 45 million euros.
The funds allocated for the 10,000-euro housing purchase grant will also be increased. In order to allocate money from the tourist tax to housing, legislative amendments will be made to enable funds from the Tax to be channelled towards housing policies.
There are also plans to launch a new Strategic Housing Plan, known as HABITA_IB 4+4, which incorporates 50 approved measures and a further 50 new ones to be implemented over the next four years, with an impact of 3,000 million euros; this will be presented before the end of this year.
The inheritance tax relief will be increased to 75 per cent for inheritances between siblings or from uncles or aunts to nephews or nieces, in cases where the deceased has no direct descendants.