The parliament recently approved the exemption of the Municipal Property Transfer Tax (IMT) and Stamp Duty for young people up to the age of 35 on their first home purchase. This measure, proposed by the government, aims to facilitate access to housing for young people and is part of the “New Housing Strategy.”
Measure Details
The exemption covers properties valued up to 316,772 euros. For properties valued between 316,772 and 633,453 euros, a partial exemption applies with an 8% tax on the excess amount. Homes purchased with this exemption cannot be rented out or used for tourism activities in the first six years, except in cases of property sale, relocation of work over 100 kms away, or changes in the household composition.
Financial Impact
The measure is expected to provide significant savings for young buyers. For instance, for a 200,000-euro house, the savings could reach 5,578 euros. The government estimates this measure will have a financial impact of about 100 million euros and will compensate municipalities for the loss of revenue.
Controversies and Criticisms
Despite being approved with favorable votes from various parties, the measure faces criticism. Experts warn that the exemption could lead to an increase in house prices due to higher demand without a corresponding increase in supply. This could negate the fiscal benefits, causing young people to end up paying more for homes.
