Mallorca first-home tax plan: €21,000 average saving
Mallorca, Balearic Islands: People under 36 buying their first home could save an average of 21,000 euros under a tax plan that has yet to be approved. Balearic Islands president Marga Prohens sets out the proposal in parliament in Palma, Mallorca, on Tuesday, 10 November. She says the measures would reach more than 2,000 people aged up to 40 across the Balearic Islands.
Who would pay less?
Prohens wants to remove taxes on first-home purchases for people under 36 and halve them for those aged 36 to 40. She also proposes incentives to help buyers save for a purchase. She puts the total impact of her plans at 55 million euros and says housing experts and professional bodies have endorsed them.
Would it help people priced out?
Josep Castells, spokesperson for Més per Menorca, says tax breaks will not solve the housing crisis. He argues that even civil servants, shopkeepers and other middle-class people can no longer imagine buying a flat. In his view, the measures would mainly help people who can already afford to spend 600,000 euros on a home.
Prohens responds that Castells opposes cutting taxes for young people. The measures still need approval; the parliamentary exchange gave no date for a decision.
Source: Europa Press / Mallorca.com