The spokesperson for the Canarian Coalition in the Congress of Deputies, Cristina Valido, highlighted this Wednesday the importance of the approval by the Lower House of the modification of the Economic and Fiscal Regime (REF) of the Canary Islands to make its investment possible to build or buy homes for residential and long-term rental. This legislative modification, which expressly prohibits the use of homes for tourist or vacation use, aims to "expand the supply of homes that are available at affordable prices for families on the islands," explained the nationalist deputy after the approval in the Finance Committee.
This new step in the Congress of Deputies to open the possibility of REF investment in this initiative for the promotion of housing construction - which today has added the ratification of the report in the Committee on Finance and Public Function - modifies Law 19/1994 of the REF for the regulation of investments in patrimonial elements affected by the activity of housing rental in the Canary Islands. Regarding the change, the spokesperson for the Canarian Coalition stressed that "it is a measure designed and planned to increase the supply of affordable rental housing and respond to the housing emergency we are experiencing in the Canary Islands because on the islands, due to their unique geographical nature, with eight islands each with its own characteristics, rental prices are beyond the reach of many families." "And this," assured Cristina Valido, "is a necessary measure, not an opportunistic measure, much less a speculative measure."
In this regard, the deputy of the Canarian Coalition reiterated the value of the legislative change. "What do we propose with this measure? That the funds from the Canary Islands Investment Reserve (RIC) can be used to build or acquire homes that will be exclusively used for residential rental or long-term rental," explained Valido, "and I want to emphasize this so that there is no doubt: homes cannot be used for vacation rental, or seasonal rental. Because only the use of the home as a habitual residence will be allowed, for long-term rental at affordable prices."
In addition, the nationalist spokesperson added, the regulations will establish strict controls such as that the homes must be rented within a maximum period of six months from their acquisition or putting into habitable conditions, since if this period is not met, the tax benefits are lost. There can also be no type of connection between the owner and the tenant. "This initiative is a fiscal tool to solve a real and urgent problem in the Canary Islands. An action out of solidarity and responsibility, to ensure that more Canarians, more families, can access decent, affordable and stable housing," highlighted Cristina Valido.
With the approval of the Finance Committee, with full legislative competence, the approval allows the RIC to be materialized in the acquisition and, where appropriate, construction of properties, provided that they are used for the rental of habitual housing (provided that the property has not been rented within the previous year), with or without an option to purchase, and there is no direct or indirect connection with the tenant." In addition, the approved modification endorses "the materialization of the RIC through the realization of investments in job creation directly related to the planned investments."
