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Date Published: 27/06/2023

Spain pushes through a number of financial aid measures before the elections

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Among the measures is a 15% income tax deduction for those who purchase an electric car in Spain

Spain pushes through a number of financial aid measures before the elections

With the Spanish general election a little under a month away the current government is pulling out all the stops to ensure a good turn-out at the polls, and this Tuesday June 27 President Pedro Sanchez will approve a number of money-saving measures to ease the burden of the war in Ukraine.

Here are a few key points in Sanchez’s decree:

Electric vehicles

To give the “green transition” in Spain another push, the Council of Ministers will approve a new regulation allowing a deduction of 15% in personal income tax for those who purchase an electric vehicle between now and December 31, 2025.

Mortgages and housing

The government will advance a line of guarantees from the Official Credit Institute (ICO) for the purchase of housing by young people or families with dependent minors.

Following another ECB rate hike last week, the inevitable increase in variable mortgage repayments is at the forefront of the discussion, and Sanchez confirmed he is in ongoing talks with the financial sector.

1,000 euros in aid will be offered to low-income families struggling to pay their mortgages and the administration hopes to urge a change in policy in the banks that will allow homeowners more easily switch from variable to fixed-rate home loans.

Food and transport

President Sanchez confirmed that two of the most popular measures – the VAT reduction on basic foods and subsidised public transport – will continue for the foreseeable future.

"In these economic times we are seeing our country grow like no one in Europe grows. We are creating jobs like they haven't been created in decades and we are redistributing that growth to a large extent," said Sánchez.

Right to be forgotten

And while it’s not a financial measure, President Sanchez has committed to pushing through the right to be forgotten, or ‘el derecho al olvido oncológico’ in Spanish, a measure that was unfortunately delayed when the government was dissolved following the regional and municipal elections in May.

Once approved this week, the law will ensure that people who have recovered from cancer will no longer have to declare the illness when taking out life insurance or applying for a loan.

In other news: Spain tourist industry on target for the best summer of all time

Image: Pedro Sanchez / Twitter

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