Buying a home before the age of 35

Buying a home can seem like an unattainable milestone, especially for those under 35 years of age. The down payment, the costs of buying and selling and above all the taxes can put the brakes on even the most solid illusions, but did you know that if you are under 35 you can access significant tax discounts?

In this article we summarise what taxes you will have to pay on a purchase, what tax advantages you have in Catalonia and how to make the most of them if you are under 35 years old.

What taxes do you pay when you buy a house?

Buying a property in Spain involves a number of taxes. These are the three main ones:

• ITP (Impuesto sobre Transmisiones Patrimoniales / Transfer Tax): between 3% and 11%, depending on the autonomous community, age, income or other conditions.
• IVA (Impuesto sobre el Valor Añadido / Value Added Tax): 10% on new homes, or 4% if it is a social housing (VPO).
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• AJD (Impuesto sobre Actos Jurídicos Documentales / Tax on Documentary Legal Acts): between 0.5% and 2%, also variable depending on the Autonomous Community.

What advantages do people under 35 have in Catalonia?

ITP reduction

In Catalonia, the ordinary ITP is 10% (or 11% in some cases), but if you are under 35 years and your general taxable income and savings taxable income does not exceed 36,000 euros, you can benefit from a reduced rate of 5%.

This is the most direct and important tax advantage available to you, and can save you thousands of euros.

What happens with social housing (VPO) for people under 35 years old?

VPOs are a real opportunity to access housing at a regulated price and with advantageous conditions. Although each community defines the criteria, those under 35 years of age often have priority access.

The usual requirements include:

– Not own any other property.

– Be registered in a specific municipality.

– Meet certain income limits.

– Be part of a group considered vulnerable.

Other cases in which a reduced ITP may be applied

In addition to age, there are other circumstances that may give entitlement to a reduction of the ITP:

– Large or single-parent families

– People with disabilities

– Low incomes

– Homes in rural or sparsely populated areas

– Refurbishment projects

Finally, as we have already seen, being informed can make all the difference.

Buying a home can be a complex process, but with the right information and the right support, it can become a much more accessible and beneficial experience, especially for those under 35.

At Finques Cel Blau, we want you to take advantage of all the tax benefits to which you are entitled. We accompany you through every step of the process, from the search for your home to personalised tax advice.

 Contact us if you want to know how we can help you.

We are at your side to make your purchase project a reality with security, confidence and savings. With our experience in the real estate sector and in-depth knowledge of the laws and tax advantages, we can advise you every step of the way, from the search for your ideal property to optimising your tax advantages.