The president of the Generalitat Valenciana, Carlos Mazón, announced that the preliminary draft of the law accompanying the 2024 Budget includes tax relief for health and sports expenses and reduced Property Transfer Tax for buying a home, mainly for young people, but also for large families and gender-based violence victims.
Mazón announced at a press conference with Ruth Merino, the Regional Minister of Finance, Economy and Public Administrations, where she pointed out that the total of this tax relief will mean that the Generalitat will no longer receive €199 million, although they are confident that it will help to "reactivate" the housing market.
The 'president' has assured that up to two million Valencians will benefit from these measures – 87.5% of taxpayers.
In terms of housing, Mazón also announced three reductions in rates for buying homes for young people, large families, people with disabilities and women who have been victims of gender-based violence, worth €19 million. There are no plans to include rental deductions.
More specifically, the reduction from 8% to 6% of the property tax for buying a primary residence for young people under 35 years old up to €180,000 will mean a "saving" of €14.7 million for this group. According to the Generalitat's "conservative" calculations, this reduction could benefit up to 15,000 young people, although he explained that he would like this figure to reach 20,000.
On the other hand, there will be a reduction from 8% to 6% of the ITP for the purchase of general social housing up to €180,000 (2.45 million) and a reduction from 4% to 3% for the purchase of special social housing and for buying a home for large families, people with disabilities and women who have been victims of gender violence up to €180,000 (1.87 million).
Tax relief for health and sports expenses
More specifically, for health and sport, the head of the Valencian government has listed six reliefs with an estimated value of €180.2 million. Among them, 30% will be deducted, up to €150, for amounts paid for expenses related to oral health, which will amount to €80.3 million.
Also, 30%, up to €100, will be deducted for the purchase of prescription glasses, contact lenses and eye cleaning solutions (63.4 million) and 30% of the expenses generated by members of the family unit who need help because they suffer from mental health problems, up to a maximum of €150 (8.67 million).
Likewise, there will be a 30% deduction, up to €150, for sports-related expenses, including federation fees, gymnasiums and private monitors for rehabilitation. Mazón defended this measure, for which it is estimated that the Generalitat will lose €25.7 million to promote "healthy living", which "will help to reduce health spending in the medium term".
The 'president' also pointed out that there will be tax relief of up to €100 for expenses generated by members of the family unit with highly complex chronic illnesses (also known as rare diseases), which will rise to €150 if it is a large or single-parent family, equivalent to €250,000. A similar deduction will also be applied to expenses generated by members of the family unit diagnosed with acquired brain damage or Alzheimer's, which will amount to €1.9 million.
Agreed fiscal measures
During his speech, Mazón pointed out that these proposals in the draft bill on Fiscal Measures are subject to debate, both in Parliament and with society, and underlined that they present a "draft bill as a proposal open to dialogue" with proposals that can "enrich the text".
In this regard, he pointed out that these proposals respond to "the needs of the most vulnerable people and families" for fiscal "relief", as well as to apply policies that "help stimulate the economy". He also indicated that these measures are in addition to the Inheritance and Gift Tax rebate, estimated at €166 million for next year.
Mazón indicated that this is the "tax reform that the Valencian Region needs as a priority", although he pointed out that "budgets are not infinite", but "people's needs are pressing". He also stated that they will practise "active taxation", adopting different measures in this area.
"This is the first big step in a tax reform that will go further. We will achieve the objectives and we will be encouraging citizens' pockets in a complementary way to the tax reduction", he said, and pointed out that they believe in "this virtuous circle in which lowering taxes ends up raising more", as citizens have "more money in their pockets" that " goes back into the economy".