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Young people in Madrid and Balearic Islands pay the most expensive rent despite deductions

In the communities of Madrid and the Balearic Islands there turns out to be a large difference in the cost of rent as time goes by, with a notable increase compared to the income of young people between 25 and 34 years of age. This, in spite of long-standing tax deductions by the governments.

This is a concern for the advancement of Spanish society, because of the problems it may cause for population growth, as explained by Enrique Garcia, CEO of TaxDown, who have revealed that despite the aid, the price of housing in these communities is still difficult to manage.

According to statistics, the INE calculates that the average salary of young people aged between 25 and 34 years reaches 21,212.04 per year. However, the money allocated to rental expenses on the part of the Balearics is an average of 14,719€, after the application of deductions. In the case of the Madrileños, the expenses imply an average of 12,394€. In third place with the most expensive rental expenses would be the Catalans, with an average of €10,818.

The opposite is the case for rents in Asturias, where we can find the most affordable rents in Spain, with an average of €6,941 per year. At the top of the cheapest is Extremadura with costs of €7,288, and Galicia with €7,576.

However, there are differences in the deductions for young people between 25 and 34 years of age in some communities. For example, in Catalonia, Castilla-La Mancha, Castilla y León, Extremadura and La Rioja these deductions are not applicable. In the case of Castilla-La Mancha, Castilla y León, Extremadura and La Rioja the limits are between €12,500 and €19,000. The only region that does not apply deductions in this sense is Aragón.

In Catalonia the maximum deduction allowed is 300€ per year. However, in order to be able to apply for this deduction, the person's income must not exceed €20,000, an amount lower than the average salary of young people of the ages indicated. Therefore, most of these young people do not meet the requirement.