The Government of Spain has published in the Official State Gazette (BOE) the content of the first decree-law on housing. The document, which consists of 96 pages, includes an initial set of measures to guarantee a constitutional right: access to "decent and adequate" housing.
Among the ten key measures of this first decree is the temporary limitation on the purchase of homes by entities at a price below 70% of their appraisal value until December 31, 2028. With the exception of operations aimed at acquiring affordable or social habitual housing.
Secondly, it contemplates the suspension of evictions of vulnerable people without housing alternatives until December 31, 2030, when the housing belongs to a vulture fund. These evictions will be suspended even if there are prior judgments and suspensions. In contrast, if the owners are individuals or legal entities dedicated to affordable rentals, they will receive compensation.
The third point reinforces the protection of tenants against temporary or room rental contracts. Thus, there must be a "real and verifiable" cause behind it to justify that the contract is temporary. Furthermore, the duration must be greater than 31 days and, generally, less than twelve months. Additionally, both temporary and room rentals will be subject to a limit linked to the Housing Rental Reference Index (IRAV).
Fourthly, large holders will have to prove their status through a registry certificate. They will also have to count the residential properties located on the same property, even if there is no horizontal division.
Fifthly, in the event of a mortgage execution claim, it must be indicated whether the property is the habitual residence of the debtor and whether the entity carrying out the eviction is a large holder. To confirm that the claimant is not a large holder, they will have to present a certificate from the Property Registry with the list of properties.
At this point, the process includes extraordinary nullification, that is, the possibility for the person to face the debts owed before losing their home or rent, and it obliges the autonomous community to cover the debts within two months if it does not propose another housing alternative. During this time, the process will be suspended; if the debt is paid, the judicial process will be suspended, and if the community does not do so within the agreed timeframe, the process will be suspended until the community "fulfills its obligation." The money that communities use to cover this debt will later be reimbursed by the State to the autonomies, except for late payment interest.
Tax incentives
This first decree also includes several tax measures to "reorient" housing use. For example, the personal income tax (IRPF) is restructured with reductions of up to 100% for those who lower or maintain their housing rent, a 10% deduction for renting a habitual residence, and tax exemptions for the sale of properties to the public sector for social housing. In contrast, taxes on tourist properties will increase. For example, in the case of the peninsula where VAT is applied, they will have to pay a 10% tax as a commercial activity, and municipalities will be able to apply surcharges of up to 150% on property tax (IBI) for tourist properties or empty homes. The measure also includes providing housing to the state housing entity Casa 47 from properties from SAREB, Social Security, and other state bodies. Meanwhile, it sets "permanent protection" for all state properties indefinitely. Furthermore, it indicates that the sale or rental price of affordable housing cannot exceed 30% of the median income for habitual cohabitation in the municipality where the property is located. To conclude, the Executive approves a financing mechanism that will grant interest-free loans of up to 50,000 euros until the mortgage is fully paid or for a maximum of 30 years, with an interest rate of 0% for housing subject to a maximum price.
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