Spain’s PP wants 4% VAT for first-home buyers
A first home in Spain could come with a smaller tax bill: the People’s Party (PP) wants to cut VAT from 10% to 4% for buyers under 40. It would also let them pay the tax in instalments alongside their mortgage. The proposals appear in the party’s election programme, reported from Madrid, Spain, on 10 November 2026.
Help with the cost of buying
For used homes, the PP wants to negotiate a cut in property transfer tax with Spain’s regional governments. Buyers could pay that tax in instalments too.
The party also wants to expand public mortgage guarantees covering up to 20% of a home’s value. They would be available to buyers under 40, with the age limit potentially rising to 50. A proposed savings account would let under-40s put aside up to €2,000 a year for a first home and claim a 20% tax deduction on their contributions.
A wider housing shake-up
If it takes office, the PP says it will repeal the current housing law. That would remove designated areas with strained housing markets and the rent price index. The party argues that the rules have brought more intervention and uncertainty while reducing the supply of rental homes.
It also stands by its target of building one million homes. The programme calls for public and private land to be made available and for permits for new builds and renovations to be handled within three months. For now, the tax cuts and housing changes remain election pledges, not law.
Source: Europa Press / Mallorca.com