Young Andalusians will benefit from more tax deductions from 2025 for the purchase or acquisition of a house. Next year’s budgets will include two new measures which will affect some 40,000 people, mainly aged under 35, according to data from the Ministry of the Economy, Finance and European Funds. All actions are included in the independent jurisdiction section of Personal Income Tax.
The first of the measures, announced by Councilor Carolina España, consists of increasing the deduction that can benefit from the person who buys or rehabilitates a house for their habitual residence. Until now, it represented 5% of the amount invested in the exercise and will now be 6%. As before, those under 35 and those who acquire subsidized housing can benefit from this measure. As a limit, the regulations in force establish that the sum of the tax bases does not exceed 25,000 euros. The maximum basis of the deduction is 9,040 euros.
“This measure aims to grant greater tax relief to taxpayers who invest in the acquisition or rehabilitation of their main residence. By increasing the deduction percentage, we seek encourage the purchase and rehabilitation of housing support young families and those who acquire sheltered housing,” explains the Minister of the Economy, Finance and European Funds. It is estimated that this measure will affect around 15,000 people per year.
Second, the Junta de Andalucía improves the existing tax deductions for renting a main residence. Until now, in Andalusian regulations, within the autonomous section of the personal income tax, 15% of the amount allocated for rental could be deducted by young people under 35, those over 65 years old, people with disabilities or victims of domestic violence, gender or terrorism. But there was a deduction ceiling of 600 euros in the tax return.
This limit will be extended from 2025 (also coinciding with the constant increase in rental prices). This way It will go from a maximum deduction per year of 600 euros to a deduction of 900 euros. For disabled people, the ceiling was set until now at 900 euros and will become 1,000 euros over one financial year.
“It is a great financial relief for vulnerable groups, it improves access to housing, allowing more resources to be allocated to basic needs, promoting social inclusion. Responds to inflation and rising costs of living», Supported councilor Carolina España during an event in Malaga. This initiative will affect around 25,000 Andalusians.
Thus, as the president of the Junta de Andalucía, Juanma Moreno, has already announced, The housing tax measures will affect 40,000 Andalusians, mainly young people.. As already announced, these are not new measures but rather a strengthening of existing ones, also adapting them to changes in the market and inflation. In this way, the Treasury can also have a real estimate of the economic impact since it is based on already existing levies.
