How Personal Income Tax (IRPF) Could Help You Save Up to 13% on Your Future Home

As property affordability remains a major challenge, especially in high-demand areas, new strategies are emerging beyond traditional mortgage financing. Personal Income Tax (IRPF) is increasingly being seen as a powerful financial tool to support homebuyers.

With the 2025 tax season approaching, experts highlight that smart tax planning could significantly accelerate the path to homeownership.

Using IRPF as a Homebuying Savings Strategy

According to a study by financial comparator Banqmi, strategic use of tax mechanisms could allow an average taxpayer to accumulate up to €34,620, representing approximately 13.02% of the average property price in Spain (€172,535).

This is mainly achieved through:

1. IRPF Bracket Adjustment (Tax Deflation)

Adjusting tax brackets to inflation prevents taxpayers from paying higher taxes due to nominal salary increases.

? Result: an average worker could have saved €2,694 over five years.

2. Housing Savings Account (Cuenta Vivienda)

Previously available in Spain, this scheme allowed buyers to deduct 15% of savings, up to €9,040 annually, when saving for their first home.

? Example: saving €1,000 generated a €150 tax refund.

How Much Do You Need to Buy a Property?

• Banks typically finance up to 80% of the property value
• Buyers must provide 20% upfront
• Additional costs range between 10%–15%

? Total upfront savings required: 25%–30% of the property price

Tax savings can help bridge this gap significantly.

Real Financial Impact Before Buying

• €6,858 in direct tax savings
• Up to €34,620 total accumulated capital

This can make a decisive difference in accessing the property market sooner.

Tax Benefits After Buying a Home

Currently, mortgage tax deductions in Spain are limited to pre-2013 contracts. However, if extended:

• Deduction: 15%
• Annual cap: €9,040

? This would reduce monthly mortgage costs and improve financial stability.

2025 Tax Season Key Dates

• Online filing starts: April 8
• Phone assistance: May 6 – June 30
• In-person appointments: May 29 – June 30

A new feature, “Direct Filing”, allows users to submit returns without modifications.

Conclusion: A Strategic Advantage for Buyers

IRPF is not a complete solution to housing affordability, but it can be a powerful complementary tool:

✔️ Before buying: helps build the required deposit
✔️ After buying: reduces mortgage burden

In today’s competitive real estate market, leveraging tax strategies can be the key to turning homeownership into reality.