Who announced what, and when

Isabel Díaz Ayuso, President of the Comunidad de Madrid, announced the two cuts on Monday 5 October 2026 at an information session (encuentro informativo) organised by Nueva Economía Fórum. The regional government published a press note the same day. This is a regional measure. It would change only the rates the Comunidad de Madrid sets for purchases it taxes.

The note describes two measures for buyers under 40, in its words "jóvenes menores de 40 años".

  • A new reduced rate of 4% in the transfer tax (ITP, Impuesto sobre Transmisiones Patrimoniales) for a resale main home, down from the current 6%, as long as the purchase does not exceed €450,000.
  • A cut in stamp duty (AJD, Actos Jurídicos Documentados) on the purchase of a newly built home, from 0.75% to 0.4%.

The regional government puts the combined saving for buyers at €116 million a year. It expects about 40,000 people to use the ITP rate, saving €114 million in total and €2,850 each on average, and about 4,200 to use the AJD rate, saving €2.1 million. Its own example is a couple buying a €300,000 home, who would pay €12,000 in ITP at the new rate, against €18,000 at the general 6% rate.

What still has to happen

According to the press note, Ayuso said both measures will take effect on 1 January 2027 and will be included in the regional budget for 2027. The note says the regional government, the Consejo de Gobierno, will approve the budget bill in October. The most recent Consejo de Gobierno agreements published on the regional site, dated 30 September 2026, contain no budget bill.

Under the region's Statute of Autonomy, the government draws up the budget and the Asamblea de Madrid examines, amends and approves it. Laws passed by the Asamblea take effect the day after publication in the Boletín Oficial de la Comunidad de Madrid (BOCM), unless they say otherwise. The cuts apply only if the Asamblea passes them and the law is published in the BOCM. The final text could differ, and 1 January 2027 is the President's stated plan, not a date in any published text.

What applies now

ITP and AJD are Spanish state taxes whose rates the region sets. The current rates are in the region's consolidated tax law, Decreto Legislativo 1/2010, last updated on 10 July 2026. The 0.75% the note cuts from is the top AJD band, and the note does not say what would happen to the two lower bands.

Purchase by an individualCurrent rateAnnounced for buyers under 40
ITP, resale home, general rate6%4% (main home, purchase up to €450,000)
AJD, home worth up to €120,0000.4%Not stated
AJD, home worth over €120,000, up to €180,0000.5%Not stated
AJD, home worth over €180,0000.75%0.4% (new homes)

A large family (familia numerosa) already pays ITP at 4% on its main home, and the note says the cuts would put young buyers on the same footing. Any buyer of a main home worth €250,000 or less can take a 10% reduction of the ITP and AJD due. A buyer under 35 gets a 100% reduction of both taxes on a main home in a municipality with fewer than 2,500 inhabitants, within the same value limit. Large families get a 95% reduction of AJD on a main home. A new home bought from a developer is normally subject to VAT instead of ITP, which is why the announcement pairs ITP with resale homes and AJD with new ones.

Who would benefit

On the terms announced, the cuts mostly help young people buying a home to live in within the region, not non-resident investors. The ITP rate is tied to a main home (vivienda habitual). In the region's existing main-home reliefs, which use the national income tax definition of a main home, a main home has to be lived in within 12 months of purchase and for at least three continuous years, or the buyer pays the general rate back with interest. A home bought to let or kept as a holiday home does not meet that test. Buyers aged 40 or over and companies fall outside the announcement. The note sets no main-home condition for the AJD cut, but it describes the expected users as young residents of the region ("jóvenes madrileños").

What the announcement does not say

The note does not say when the age is measured, how joint buyers of different ages would be treated, or whether the €450,000 limit refers to the price or the tax value. It gives that limit only for the ITP rate. It does not say whether the AJD rate is limited to main homes, or whether the new ITP rate could be combined with the 10% reduction, which current law bars for the large-family 4% rate. The bill text will settle these points.

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Sources

Sources read 6 October 2026 (SGT).