The Andalusian Government has approved a set of tax incentives aimed at combating depopulation in villages. Residents of villages with fewer than 3,000 inhabitants will receive financial support when purchasing a home, as the Tax on Property Transfers and Documented Legal Acts (ITP/AJD by its acronym in Spanish) has been reduced from 8% to 3.5%. This reduction applies provided the property is intended as a primary residence and its purchase price does not exceed €150,000.
This measure will benefit a total of 426 villages, with 121 located in Granada, 69 in Almería, 59 in Málaga, 56 in Jaén, 49 in Huelva, 37 in Córdoba, 24 in Seville, and 11 in Cádiz.
If you want to know each of the towns that benefited, click on this link (only available in Spanish).
The Minister of Economy, Finance and European Funds, Carolina España, highlighted during the announcement that Andalusia has transformed from a "tax hell" into the second community where the least taxes are paid, thanks to an increase of 200,000 new taxpayers in 2024, according to data from the regional government.
España also pointed out that if someone were to purchase a home for the maximum allowed value, they would save a total of €6,750.
More tax incentives
Another measure approved by the regional government is the increase in economic incentives for each child residing in one of these villages at risk of depopulation. The amount has risen from €200 to €400 per child, whether by birth, adoption or foster care.
This bonus will be granted annually through the Personal Income Tax (IRPF).
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