Andalusia Announces Lower Property Transfer Tax and More Support for First-Time Homebuyers

The Regional Government of Andalusia has announced new measures aimed at making homeownership more accessible, particularly for young people and first-time buyers.

The main development is the strengthening of the Andalusia Home Guarantee Programme, which will receive an additional €25 million. With this increase, the programme’s total budget will reach €80 million.

This programme enables eligible young people up to the age of 40 to obtain a mortgage of up to 100% of the property’s purchase price. It does so through a public guarantee covering the portion of the mortgage above the usual 80% bank financing threshold.

To apply, applicants must meet several requirements, including:

• Be aged 40 or under.

• Be registered as residents in Andalusia.

• Not own another residential property anywhere in Spain.

• Have their mortgage approved by a participating financial institution.

• Buy a primary residence priced at no more than €295,240. This limit increases to €354,288 for properties with an A or B energy-efficiency rating.

According to figures released by the regional government, more than 3,000 young people have benefited from the programme since it was introduced in 2024.

In addition, a gradual reduction in the Property Transfer Tax (ITP) has been announced. From 2027, the general rate will decrease from 7% to 6.75%, with the intention of reducing it by a further quarter of a percentage point each year until it reaches 6% by the end of the current legislative term.

The maximum property value qualifying for the reduced 6% rate and the super-reduced 3.5% rate will also rise from €150,000 to €200,000.

The super-reduced rate is available to groups facing greater barriers to homeownership, including buyers under 35, victims of gender-based violence, victims of terrorism, and buyers purchasing in municipalities at risk of depopulation. For people with disabilities and large families, the property-price limit will be €300,000.

In my view, these measures may help address two of the main obstacles facing first-time buyers: the lack of savings needed for a deposit and the tax costs involved in purchasing a property. However, before making a decision, it is important to confirm that all eligibility requirements are met, assess your actual borrowing capacity, and consider the full cost of buying—not just the property price.