PP-Led Regions to Reduce Property Transfer Tax to 4%

In response to Spain’s ongoing housing crisis, the Partido Popular (PP) has unveiled a series of measures aimed at improving access to housing. These initiatives were announced during the “”Declaración de Asturias,”” a summit between Alberto Núñez Feijóo and regional PP leaders. The proposals focus on fiscal, regulatory, and administrative reforms to tackle housing challenges.

Key Proposals

1. Tax Reduction on Home Purchases

One of the standout measures is the reduction of the Property Transfer Tax (ITP) to 4% for young homebuyers. Each autonomous community will determine income and property price limits to qualify for this tax benefit, requiring legislative implementation at the regional level.

2. Reforming Land Laws & Repealing the Housing Law

The PP seeks to repeal the current Housing Law and introduce a new Land Law with a reformist approach. Key proposals include:

• Relaxing regulations to facilitate the construction of affordable housing (VPO).
• Promoting rental housing at affordable prices.
• Streamlining urban planning to accelerate real estate activity.

3. Combating Illegal Occupation

The PP proposes passing a law to evict illegal occupants within 24 hours, featuring:

• A registry of occupied properties.
• Legal assistance for victims of illegal occupation.
• A dedicated reporting system.

Legally, this would involve reforming eviction procedures to reinforce property owners` rights.

4. Incentives for Property Owners & Developers

To increase rental supply, the PP suggests:

• Non-payment insurance and legal support for owners renting vacant properties to public programs.
• Tax incentives for developers constructing affordable housing.

5. Administrative Simplification & Fiscal Policies

The PP aims to:

• Shorten urban planning approval times from nine to three months.
• Mobilize public land for the development of protected housing.

These reforms will require substantial regulatory adjustments at both regional and national levels to harmonize procedures and ensure effective implementation.

Conclusion

The PP’s housing proposals present a comprehensive strategy to improve housing access, boost supply, and strengthen legal security for property owners. While these initiatives could ease Spain’s housing crisis, their success depends on several factors:

• The fiscal effort by PP-led regions to reduce the ITP tax and incentivize developers.
• The political and technical challenge of repealing the current Housing Law and passing a new Land Law, requiring parliamentary consensus.

Overall, the PP`s plan offers an alternative to existing policies but must be executed in alignment with EU regulations and stakeholder agreements at the national level.

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