The president of the Generalitat Valenciana, Carlos Mazón, announced this Thursday a package of measures to alleviate the tax pressure on the lowest incomes. After criticism from the left for prioritizing the elimination of the Donation and Inheritance Tax as the first announcement, the popular leader today placed the emphasis on less wealthy families.
Thus, accompanied by the Minister of Finance, Ruth Merino, he has announced the reduction of the Property Transfer Tax to facilitate access to housing for young people. The draft of the Accompanying Law of the new Consell de PP and Vox provides for a 25% reduction of this tax for all young people under 35 years of age who acquire a habitual residence of less than 180,000 euros. Thus, Mazón explained, the rate goes from 8 to 6%, so that, in the purchase of a property for 170,000 euros, the savings would be 3,400 euros.
Although this is still a projection, the Valencian Government estimates that the purchase of a home may affect around 15,000 young people.
This 25% reduction in the tax is also carried over to purchases of officially protected primary residences under the general regime when its value is below 180,000 euros. Meanwhile, a super-reduced VAT of 3% is established for this type of property as long as the buyers are large families, people with disabilities or women subject to gender violence.
In addition, Mazón has announced tax deductions “aimed at people's well-being and health” for individual returns of up to 32,000 euros and joint returns of up to 48,000 euros.
There are a total of six: 30% deduction (up to 150 euros) for expenses related to oral health; 30% (up to 100 euros) for prescription glasses, contact lenses and cleaning solutions; 30% (up to 150 euros) for expenses derived from mental health; up to 100 euros for chronic or rare diseases (150 euros in the case of single-parent families); and up to 100 euros for expenses generated by members of the family unit diagnosed with acquired brain damage or Alzheimer's; also the deduction of 30% (up to 150 euros) for sports expenses.
In the case of deductions, Mazón has pointed out, these will have retroactive effect to January 1, 2023.
All these regulatory changes, which must be approved with the Accompaniment law, will have an economic impact of 199 million euros. In the case of the purchase of a habitual residence it will be 14.7 million, although where it will be most noticeable in the taxpayers' pockets, in the opinion of the Consell, is in oral health expenses (80 million) and ophthalmological expenses ( 63 million).
