La Junta de Andalucía has launched the largest housing tax package of all autonomous communities, according to the Minister of Economy, Finance, and European Funds, Carolina España, who emphasized that these tax reductions and incentives have reached up to 460 million euros throughout 2024, benefiting 250,000 Andalusians.
For the minister, «this is our way of exercising responsible autonomy, reducing taxes so that Andalusians pay less when buying or renting a home.» She detailed that «the main advantage of using tax policy to reduce the cost of housing is that it is a direct, immediate, and bureaucracy-free measure without administrative costs.»
Carolina España highlighted that Andalusia is the community that offers the most tax incentives and reductions to its citizens when acquiring or renting a home to build a household. «If we add up the impact of these measures from the Fiscal Plan, around 460 million, to specific investments in housing policies, we can see that, each year, the Andalusian Government makes an effort close to 1,000 million euros in housing matters,» she asserted.
Among the measures implemented by the Government, the Finance Minister mentioned the reduction to 7% of the general rate in the Property Transfer and Documented Legal Acts Tax (ITP-AJD), which is further reduced to 6% when the home costs less than 150,000 euros. Additionally, a super-reduced rate of 3.5% is set for young people and large families, as well as for homes purchased in municipalities at risk of depopulation, spanning over half of the Andalusian municipalities.
All these cases, she specified, were previously taxed at rates between 8 and 10%, while now Andalusians have been able to save an average of 3,220 euros for each transaction or tax payment, compared to what they would have paid in 2018. «In 2024, over 197,000 Andalusians benefited from the ITPAJD, saving 443 million,» she highlighted.
Carolina España also recalled that income tax reductions have been established for Andalusians buying or renting a home, benefiting 50,000 Andalusians each year with savings close to 19 million. In this way, young people up to 35 years old investing in their primary residence receive a 6% deduction on the amounts invested each year in paying for that home, extended to all Andalusians acquiring a protected home.
The Minister of Economy emphasized the effort to make renting a primary residence as least burdensome as possible. Thus, a 15% deduction has been established, with a limit of up to 900 euros, for individuals under 35, over 65, people with disabilities, victims of gender-based violence, and victims of terrorism.
Aid to young people
In this sense, the Andalusian Finance official has focused on the effort to promote and facilitate access to the first home for younger individuals. In fact, the measures implemented by the Government benefited 88,000 individuals under 35 years old throughout the past year, saving 100 million euros.
Alongside tax reductions, the Andalusian Government has introduced a specific plan for access to mortgage financing called Youth Housing Guarantee, where the regional administration provides guarantees that, alongside the bank mortgage, allow young Andalusians to cover 100% of the purchase of their first home. In 2024, up to 1,200 Andalusians were able to access the purchase of their first home through this program, which, due to its success, has doubled its amount for 2025 to reach 45 million. Additionally, the age limit for beneficiaries has been raised to 40 years.
As she exemplified, «a person up to 35 years old purchasing a home in Andalusia today pays up to 6,750 euros less in taxes, an amount equivalent to the average of a year’s mortgage, while a large family acquiring a first home up to 250,000 euros directly saves around 11,000 euros.»
«In Andalusia, we use our powers to address the real issues of Andalusians, we strive to be useful to society and resolve the concerns that matter most to Andalusians, such as housing,» she stated.