The Partido Popular has announced plans to reduce VAT on newly built homes from 10% to 4%, introduce state-backed guarantees for young homebuyers and accelerate housing construction if Alberto Núñez Feijóo becomes Spain's next prime minister.

The proposals were presented by Sergio Sayas, the PP's spokesperson for Housing and Urban Agenda in Congress, during the party's housing forum, Por fin vivienda, held at Espai IBAVI in Palma on 5 November 2026.

The event also featured José Vicente Marí Bosó, the PP candidate for Congress in the Balearic Islands, and Marga Prohens, president of the PP in the Balearic Islands, who delivered the closing address.

The announcements form part of the party's housing proposals ahead of Spain's general election on 29 November. The measures are campaign commitments and would require implementation if the PP enters government.

VAT reduction and tax incentives for homebuyers

One of the main proposals presented by Sayas is to reduce VAT on new housing from the current 10% rate to 4%.

The proposal also includes a reduction in VAT on rehabilitation works, although the detailed eligibility conditions and types of projects that would qualify have not been fully specified.

Other proposed tax measures include a 100% tax exemption on qualifying financial gifts from parents and grandparents when the money is intended to help purchase a home.

The PP also wants to introduce income-tax incentives for young people to make it easier to save towards buying their first property.

State-backed guarantees are another part of the package, intended to help young buyers who can afford mortgage repayments but struggle to accumulate the savings needed for a deposit.

In a separate announcement, Alberto Núñez Feijóo had previously promised guarantees of up to 100% of a property's value for eligible first-time buyers under 40, alongside reductions of up to 60% in VAT and property transfer tax.

The specific conditions and practical operation of these proposed guarantees would need to be established through the relevant legislation and implementing measures.

PP wants to build one million homes

Increasing the supply of housing is another central element of the party's proposals.

Feijóo has committed to facilitating the construction of one million homes during the next parliamentary term. The PP argues that increasing supply is necessary to improve access to housing and put downward pressure on prices.

At the Palma forum, Sayas outlined proposals to accelerate the availability of land and simplify planning and building procedures.

The party wants to introduce strategic residential development projects, with the aim of reducing the time required to complete the process of developing a home from an estimated 15 years to four years.

It also proposes that at least 50% of housing in new developments should be reserved for affordable accommodation.

Another measure would establish a three-month deadline for granting building permits, after which positive administrative silence would apply under the proposed system.

The objective, according to the PP, is to reduce delays in urban planning and make it easier for developers to bring new housing projects to market.

Repeal of the national Housing Law and new anti-squatting legislation

The PP also intends to repeal the current national Housing Law, which it considers too interventionist and, in its view, responsible for reducing legal certainty for property owners.

Sayas argued that the legislation had contributed to higher housing prices and had failed to resolve the difficulties faced by people trying to find a home.

The party is proposing a replacement approach focused on increasing supply, reducing administrative barriers and strengthening the legal protection of property owners.

José Vicente Marí Bosó also said that a future PP government would seek to advance an anti-squatting law that has been awaiting progress in Congress.

He described the proposed legislation as one of the measures the party would prioritise if Feijóo reaches the Moncloa.

Marga Prohens highlights the Balearic housing measures

Marga Prohens, president of the PP in the Balearic Islands, closed the forum by defending the housing policies implemented by her regional government.

She highlighted measures aimed at increasing housing supply, making better use of available land and facilitating development, including the possibility of building higher in suitable areas.

Prohens also defended the Balearic Government's approach to public housing, which includes prioritising applicants who meet residency requirements established for the relevant programmes.

She highlighted the regional government's tax measures for young buyers and families, arguing that reducing the tax burden and increasing the availability of housing should work together.

The PP Balearic organisation also referred to its regional initiatives, including the Nova Hipoteca Jove programme, direct financial assistance and planned tax deductions through the Compte Jove Ca Teva.

These are separate regional measures and should not be confused with the national proposals presented by Sayas.

Housing becomes a central issue ahead of the 29 November election

The Palma forum was the PP Balearic Islands' first major pre-campaign event focused on housing ahead of the general election on 29 November 2026.

The party is presenting its approach around three main priorities: increasing the number of homes available, reducing the tax and administrative burden associated with housing, and changing the legal framework governing the market.

The proposals include a lower VAT rate for new housing, tax incentives for young buyers, state-backed guarantees, faster planning procedures and a commitment to facilitate the construction of one million homes during the next parliamentary term.

All these measures remain political proposals. Their introduction would depend on the outcome of the election, the formation of a government and the subsequent legislative process.