PSOE and Podemos Block Tax Cuts for First Homes in Seville

The City Council Plenary rejects the PP's motion to urge the Government to reduce taxes on the purchase of first homes. PP and Vox approve it.

The City Council of Seville held an extraordinary plenary session on Tuesday marked by the housing access crisis, but the PP's flagship proposal to lower taxes on first homes was blocked by the opposing votes of PSOE and Con Podemos-IU.

The motion, presented by the popular group, aimed to urge the central Government to restore direct aid for the purchase of first homes and to subsidise mortgage interest rates, as well as to allow VAT deductions on rental promotions. Additionally, it requested the Junta de Andalucía to grant or reduce the Tax on Property Transfers and Documented Legal Acts, especially for those under 35, large families, and vulnerable groups.

However, the 12 PSOE councillors and the 3 from Con Podemos-IU voted against it, while the 13 from the PP and the 3 from Vox voted in favour, allowing for its partial approval by achieving a simple majority. The mayor, José Luis Sanz (PP), defended the initiative as a necessary step to alleviate the tax burden on Seville residents, while the opposition criticised it as an electoral measure that does not address the root of the problem: the lack of public housing supply.

The debate was preceded by the presentation of the Plan Sevilla Centro Vivo, an initiative from the mayor to promote permanent residency in the Old Town through the rehabilitation of spaces and the transfer of municipal buildings. However, the highlight of the session was the tax vote, which highlighted the division among municipal groups.

According to municipal sources, the approved motion is not binding but represents a political mandate for the government team to convey these demands to Congress and the Junta. On previous occasions, the City Council had already requested similar measures, such as in 2024, when a request for the reduction of VAT on new housing was made unsuccessfully.

The PSOE spokesperson, Antonio Muñoz, justified the vote against by arguing that "you cannot ask the central Government to lower taxes while the PP does not apply the bonuses that the regional law already allows." Meanwhile, the spokesperson for Con Podemos-IU, Susana Hornillo, stated that "real estate speculation is not fought with tax cuts, but with more public housing and price control."

From the PP, the councillor for Finance, Juan Bueno, replied that "the left prefers that Seville residents continue to pay impossible mortgages rather than alleviate their tax burden." Vox, which supported the motion, added that "it is a disgrace that they refuse to lower taxes while families are struggling."

The plenary session was attended by dozens of residents who followed the debate from the public gallery. The session lasted over four hours and included other points such as improvements to public transport and street cleaning, but housing dominated the agenda.

The approved measure will now be sent to the central Government and the Junta de Andalucía for consideration. However, sources from the regional executive have already indicated that they will study the request, although they remind that the Junta has already applied bonuses in the past. Specifically, in 2022, the Tax on Property Transfers was reduced to 7% for those under 35, a measure that lapsed as it was not renewed.

For those interested in the details of the motions, the minutes of the plenary will be available on the City Council's website in the coming days. Meanwhile, the debate on how to facilitate access to housing in Seville remains open.