The Partido Popular (PP) government in Andalucia is preparing a fresh round of tax cuts as the regional election campaign intensifies, with a focus on measures aimed at younger voters and homebuyers.
Over the past two legislative terms, the administration led by Juanma Moreno has approved seven tax reduction packages worth more than €1 billion.
The latest, introduced this year, included headline-grabbing deductions on income tax for gym memberships and even pet ownership.
Now, the PP is outlining an eighth package, made up largely of lower-cost measures for the public purse but with clear electoral appeal.
One of the key proposals is the elimination of inheritance tax on primary residences passed between siblings, a move already flagged earlier in the campaign.
Moreno has also announced plans to expand tax relief for young people buying homes.
Currently, buyers under 35 benefit from a reduced property transfer tax rate of 3.5%, instead of the standard 7%, but only for properties valued up to €150,000. For people with disabilities or large families, the cap is €250,000.
Under the PP’s proposal, the €150,000 threshold would be raised to over €200,000, although the final figure has yet to be confirmed.
In practical terms, this would mean a young buyer purchasing a €200,000 property could see their tax bill drop from €14,000 to €7,000.
The measure would not apply universally but would extend benefits to groups already eligible for reduced rates, particularly younger buyers struggling to access the housing market.
Housing affordability has become a central issue in the campaign, with rival parties also putting forward proposals.
The PSOE, for example, has pledged to reform the same tax with a progressive structure, lowering rates for first-home purchases while increasing them for those acquiring multiple properties.
The PP’s programme also includes additional incentives tied to energy efficiency. Buyers who invest in improving a property’s energy rating could qualify for further reductions in transfer tax.
Another longer-term pledge is the abolition of wealth tax, although this depends on changes at the national level, particularly the future of Spain’s tax on large fortunes.
Andalucia will head to the polls on May 17.
Read more Andalucia news at the Spanish Eye.
