Billionaire businessman José Elías has proposed lowering taxes on first-time home purchases in Spain to help buyers facing rising property prices and falling sales.
Elías, who owns companies including Audax Renovables and La Sirena, outlined his tax proposal during a podcast appearance. He said he did not want his own taxes reduced, but argued that authorities should cut taxes exclusively on a buyer's primary registered residence.
The multi-property owner said individuals buying a second home should pay full taxes, adding that public policy should not encourage real estate speculation. He said the housing debate must focus on solving the housing problem for individuals rather than assisting large investors who use property as a business.
Mortgage expert Montse Cespedosa stated that impossible housing prices have already driven an unprecedented migration of families. Elías noted that buyers choose homes based on monthly mortgage payments rather than total purchase prices, explaining that a buyer who cannot afford 250,000 euros might be able to pay 190,000 euros.
Tax financing and long-term home loans
To reduce upfront costs, Elías suggested spreading tax payments across the lifetime of the property, such as over a 25-year period. He said people would buy homes if they did not need a large down payment and could secure monthly payments similar to rent costs.
Accumulating initial savings remains one of the primary obstacles keeping buyers from managing mortgage expenses, Elías said. He added that financing taxes over time would preserve tax revenues for authorities while giving first-time buyers a realistic path to ownership.
Falling transactions and rising housing costs
The proposal comes as data from the Association of Registrars shows Spanish home sales fell 5.7% in the second quarter of 2026 to 167,934 transactions. The drop marked the second consecutive quarterly decline and represented a 2.3% decrease compared to the same period a year earlier, reaching the lowest volume in seven quarters.
Market cooling coincided with continued price increases across the country. According to the Fotocasa Real Estate Index, second-hand home prices in Spain rose 0.7% in July compared to June and 16.2% year-on-year, bringing average asking prices to 3,154 euros per square meter.
The price growth means a standard 80-square-meter home costs 35,094 euros more than it did a year ago. First-time buyers face growing barriers because banks rarely finance 100% of property values, leaving buyers to cover down payments, taxes, and transaction fees with incomes that have not matched rising housing costs.
