Increasing the public housing stock — which, according to Sánchez, currently represents just over 2% of the total — to make more affordable homes available is one of the main measures announced by the leader of the Spanish government.
The new Public Housing Company, which was created from the transformation of the State Land Entity (Sepes), will oversee this process, after the Spanish Executive approved the transfer of all homes owned by public companies such as Muface at the end of December.
In terms of tax incentives, the Sánchez Government will provide aid over the next five years for the rehabilitation of housing to be rented at affordable prices, as well as a 100% exemption from IRS for those who rent a property according to the Reference Price Index, regardless of whether or not it is located in an area classified as having real estate tension.
To limit speculation and fraud in the housing sector, the Spanish Executive will propose to Congress a change in the taxation of tourist residences, so that they are taxed as an economic activity, like hotels, in areas where there is greater tension in access to housing or saturation tourist.
Here are the 12 measures:
Transfer more than 3,300 homes and nearly two million square feet of residential land to the newly created Public Housing Corporation, with the goal of building affordable social housing. Additionally, 13,000 houses owned by Sareb will immediately pass into the hands of the new public company, while another 17,000 will be incorporated progressively.
Prioritize the new Public Housing Company in the acquisition of housing and land.
Ensure, by law, that all housing built by the Spanish State remains indefinitely public property, preventing its liberalization. “Whatever is built or rehabilitated with public money will continue to be public, so that it does not end up in the hands of speculators or vulture funds,” promised Pedro Sánchez.
Launch of a strategic plan, within the framework of PERTE (the mobilizing agendas of the Spanish PRR), which aims to modernize the construction sector, focusing efforts on the prefabrication of houses and subsequent assembly on site, which involves less time and lower cost. The Spanish Prime Minister announced that this plan will be developed in the province of Valencia “to contribute to the reconstruction of the economic fabric [of the region] after the DANA phenomenon”.
Creation of a system of public guarantees that protects both landlords and tenants in cases of affordable rentals. The system will start working this year for owners who rent their homes to people up to 35 years old.
Creation of a new program to rehabilitate vacant homes for affordable rentals.
100% exemption from IRS for owners who rent their homes according to the Reference Price Index, without the need for them to be located in declared tension areas. This is a proposal that needs the ‘green light’ from the Spanish Congress.
The Government will also propose to deputies that tourist accommodation be considered an economic activity.
Make the tax benefits of “socimis”, listed real estate investment companies, conditional on the promotion of affordable rental housing.
Limit the purchase of housing by non-EU citizens by increasing the tax rate to 100%. This measure accompanies the end of golden visas, which will be valid from April.
Tighten regulations that pursue fraud in vacation rentals and create a fund for autonomous communities and municipal governments to reinforce inspections of illegal tourist housing and fraudulent uses of housing.
A new State Housing Plan, which will come into effect in 2026.