Home » News » Reclaiming the Property Tax Deduction and Mortgage Assistance: PP’s Request.

Reclaiming the Property Tax Deduction and Mortgage Assistance: PP’s Request.

He leader of the PP, Alberto Núñez Feijóohas launched two proposals to help families with the rise in mortgages, which includes the creation of a fund with contributions from banks and the Government to help middle and low incomes, as well as the recovery of the “old deduction tax for acquisition of habitual residence”, eliminated by the Government of Mariano Rajoy (PP) in 2013.

In an act in Guadalajara, after visiting the NIPACE Foundation, Feijóo stressed that his party is “concerned” about the economic and social situation in Spain and wants to be “useful” by proposing proposals for the Executive to assessat a time when mortgages can rise by an average of 200 euros per month.

For this reason, he has proposed “resuming the old tax deduction for the acquisition of a habitual residence”, since, as he has said, it is “essential that someone who has bought a home can deduct in income tax what has been paid for the loan“.

Secondly, he has proposed creating a fund, “with a contribution from the bank” and the Government, to help middle and low incomes to deal with mortgages. In his opinion, these two “combined” measures can help families at this time because they do “justice” with medium and low incomes.

“I ask the President of the Government to help the people and worry about their problems and not help the convicted politicians so much,” Feijóo proclaimed, alluding to the leaders convicted of the ‘procés’ and the reform of the crime of sedition.

Confusion over who removed this tax relief

The anecdote has been that the The PP leader himself has been wrong to blame the PSOE for the responsibility of suppressing the deduction in Personal Income Tax (IRPF) for home purchase.

As he has stated, it is “fundamental that someone who has bought a home can deduct from income tax what has been paid for the loan”, as was being done “until the PSOE arrived”. However, it was the Government of Mariano Rajoy that decided that as of 2013 the deduction for purchase of habitual residence would end.

From the PSOE they have reacted to Feijóo’s statements. The Minister of Finance and Public Function, María Jesús Montero, has replied to the leader of the PP on his Twitter account that “I don’t know if it is insolvency or bad faith, but Feijóo is lying when he says that the PSOE and Pedro Sánchez eliminated the deduction in personal income tax for home acquisition. It was the Government of Mariano Rajoy who, in breach of its electoral program, abolished this deduction as of 2013”.

The First Vice President and Minister of Economic Affairs and Digital Transformation, Nadia Calviñohas commented that “Feijóo continues to be a bit confused because it was the Executive of Mariano Rajoy who eliminated said deduction as soon as he arrived at the Government, in order to prevent the bubble in the real estate sector from continuing”, the economic manager of the Government in statements to the media.

The catalog of measures and options to support families with mortgages is finalized

Given the other measure that Feijóo has commented on the bank contribution fund to face the rise in the cost of mortgages, Calviño interprets that “he is beginning to open up to the idea of ​​an extraordinary tax on financial institutions.”

The Vice President recalled that a catalog of measures and options is being prepared to support families, beyond the mechanisms that already exist.

“Families that may not be in a situation of vulnerability, but are at risk of vulnerability precisely because of this rise in interest rates, which also coincides with an environment of higher prices in general,” he warned.

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