The housing decree that Congress validated this Thursday, with the support of the PSOE, Sumar, ERC, Bildu, PNV and Podemos and the votes against the PP, Vox and Junts, allows rental contracts that expire before 2029 to be extended for two years and puts limits on the annual update of rents until the end of 2027.
The decree, in force since last October 8, also protects vulnerable families without housing alternatives from rental evictions until December 31, 2030 and limits the purchase of properties to "large holders" until the same date.
It also regulates seasonal and room rentals; imposes a 10% VAT for tourist apartments; It reduces the VAT for protected housing to 4% and creates tax benefits for tenants and landlords and public loans at 0% for the down payment of a mortgage.
These are the most relevant measures of the validated decree.
Rent extension
The extension of rental contracts that expire before December 31, 2028, by annuities, with a maximum of two years. Tenants have to request them and to do so they have to be up to date with their payments and have been up to date for the previous eight months.
Annual update of income
Cap on the annual update of rents until December 31, 2027 of 0% if the rent exceeds the maximum of the reference price index of the Ministry of Housing and 2% if it does not exceed it.
Temporary rental
A minimum duration of 31 days and a maximum of twelve months is established for temporary rentals and the temporary nature of the contract must be justified. If this is not duly accredited, the contract will automatically be considered to be a habitual residence, as well as when more than two temporary contracts are linked with the same tenant.
Rent per room
The sum of the rental price of the home per room may not exceed the amount of the rent for the unitary lease contract for the entire home.
Evictions of vulnerable people
Evictions of vulnerable people without a housing alternative are suspended until December 31, 2030, if the landlord is a company dedicated to speculating with residential buildings.
With the rest of the landlords, the eviction suspension will be reviewed every twelve months and will have a maximum duration of three years. In evictions due to non-payment, the tenant may end the judicial process if they pay the amounts owed.
In the event of the tenant's economic vulnerability, the corresponding autonomous community will have two months to offer an adequate housing alternative or, failing that, pay the landlord or judicially assign all of the amounts claimed and accrued up to that point, as well as the procedural costs in favor of the plaintiff.
The General State Administration will compensate the autonomous communities, including the Basque Country and Navarra, for the cost of this obligation.
Great forks
Acquisitions of housing from large holders and various entities are prohibited until December 31, 2030.
Tourist rentals
Tourist rentals will be taxed at 10% VAT as of December 1, 2026. In addition, city councils are allowed, in municipalities located in stressed areas, to establish a surcharge of up to 50% of the IBI on residential properties intended for tourist accommodation.
This surcharge may reach 100% in the case of owners of two or more residential properties intended for that use and 150% in the case of owners of four or more.
Tax reductions
Tax reductions for landlords who are not large tenants and reduce their rent by more than 5% compared to the previous contract, in a range of percentages that ranges from 15% to 100%, according to various assumptions.
Deduction in personal income tax
Deduction for tenants of 10% in personal income tax for the amounts paid in the year for the rental of the habitual residence for taxpayers who earn less than 33,007.20 euros per year.
If they earn up to 23,007.20 euros per year, the 10% deduction can be applied on a maximum of 11,630 euros of rent (that is, up to 1,163 euros of deduction).
If they earn between 23,007.20 and 33,007.20 euros, that limit of 11,630 euros is reduced little by little and, for every euro that the income exceeds 23,007.20 euros, the limit drops by 1.163 euros.
ICO loans
ICO loans, without interest or commissions, of up to 50,000 euros, for the start of the purchase of the first home (20% of the value), with a grace period until the mortgage payment is completed or a maximum of 30 years and which will have a period of 10 years for its repayment.
The homes acquired with these loans will be permanently subject to a maximum transfer price.
Tax for REITs
A special tax is established for SOCIMIs (Listed Public Limited Investment Companies in the Real Estate Market) of 25% of the undistributed profits from the activity of leasing or transferring residential use, including tourist and short-term accommodation, in the part corresponding to income that has not been taxed at the general rate of Corporate Tax nor is covered by the planned reinvestment period.
The tax is reduced by 50% when more than 80% of the rental housing stock is affordable, or by 100% when, in addition, the undistributed profit is reinvested in three years in housing intended for affordable rental.
City councils may charge a surcharge of 50% of the IBI for houses that have been closed without justified cause for more than two years, if they are not in an area declared stressed and belong to owners of four or more properties for residential use; and a surcharge of up to 100% when the period of vacancy exceeds three years.
In addition, city councils may increase the surcharge percentage by up to 50 additional percentage points in the case of properties owned by owners of two or more unoccupied homes in the same municipal area.
In municipalities located in an area with a stressed residential market, town councils may demand a 50% surcharge on homes that have been empty for two years and 100% in the case of owners of four or more properties.
When the period of vacancy exceeds three years, the surcharge percentage may be increased by up to 50 additional percentage points in the case of properties belonging to owners of four or more homes.
Official Protection Housing
The VAT on VPOs with permanent or indefinite qualification is reduced to 4%.
Social Impact Housing Fund
The Social Impact Housing Fund is created, attached to the Ministry of Housing, to finance the promotion of social impact housing by social providers, with an initial endowment of 400 million euros.
Lease Offer
The advertising, promotion and offer of housing rentals is regulated, so every advertisement must include the reference index of the housing rental price, the rent limit applicable in areas subject to legal limitation, as well as the condition of the landlord as a large holder.
Affordable housing
It is established that affordable housing will be considered housing whose sales or rental price conditions, including all expenses associated with it, do not exceed thirty percent of the median income of the usual cohabitation unit of the municipality in which the property is located.
Permanent price limitation
A permanent limitation is set on the sale price of homes owned by Casa 47 and the transfer of properties owned by Social Security is definitively regulated.
