Sánchez unveils new housing plan with rent guarantees and up to 100% tax exemptions for landlords


  • 14-01-2025
  • National
  • Canarian Weekly
  • Photo Credit: RTVE
Sánchez unveils new housing plan with rent guarantees and up to 100% tax exemptions for landlords

The Spanish Prime Minister, Pedro Sánchez, announced a comprehensive new housing policy yesterday, Monday, aimed at increasing residential housing availability on the long-term rental market, tightening market regulations, and offering greater support for those looking for homes.

The measures were revealed during the forum "Housing: The Fifth Pillar of the Welfare State", organised by the Ministry of Housing and Urban Agenda (MIVAU) at Madrid’s Railway Museum.

The initiative includes 12 key measures designed to make housing more accessible, particularly for younger people. One major proposal is a 100% income tax exemption for property owners who rent homes at rates aligned with the national reference index, regardless of whether the property is located in a designated high-demand area or not.

Public Rental Guarantees and Rehabilitation Incentives

Sánchez introduced a public guarantee system for rental properties, ensuring landlords receive rental payments while increasing affordable housing options. This scheme will initially focus on landlords renting to individuals under 35 and is expected to be operational this year.

Additionally, a new programme will provide financial incentives for renovating vacant properties to make them available for affordable long-term rental agreements of at least five years.

Industrialised Housing Construction and Support for Affected Areas

A new public-private project leveraging European funds will focus on industrialised housing construction. This approach is expected to reduce construction times and costs while fostering innovation and sustainability in the housing sector.

Sánchez announced that the initiative would begin in Valencia, aiding reconstruction efforts in areas damaged by the recent DANA storm.

Higher Taxes for Non-Resident Foreign Buyers

To deter speculative investments, taxes on property purchases by non-resident foreigners will be increased, with levies potentially reaching 100% of the property’s value.

Reforming the Housing Market

The Prime Minister also proposed reforming the fiscal treatment of real estate investment trusts (SOCIMIs), aiming to restrict their tax benefits to investments in affordable residential rental housing. This comes after previous attempts to overhaul SOCIMI regulations failed in Parliament.

Expanding Public Housing Stock

The government plans to transfer over 3,300 homes and two million square metres of residential land from public ownership to a new state housing company.

By mid-2025, an additional 30,000 properties from the SAREB ("bad bank") portfolio will be added, 13,000 of which are already being used as social rentals.

Targeting Tourist Rentals and Fraud

Sánchez announced stricter measures on short-term rental properties, including classifying them as economic activities subject to IVA (or IGIC in the Canary Islands) in high-demand or tourism-saturated areas.

Additional funding will be provided to local governments to enhance inspections and combat illegal holiday let rentals.

Expanded Support for Vulnerable Groups

The new State Housing Plan 2026–2030 will increase existing aid programmes, prioritising older adults, young people, individuals with disabilities, and residents in disadvantaged areas.

Context and Opposition Response

The announcement follows recent discussions by opposition leader Alberto Núñez Feijóo, who convened with regional leaders in Asturias to develop the People’s Party’s strategic agenda for 2025, with housing as a focal point.

Sánchez’s proposals will now move to Parliament, where fiscal reforms and regulatory changes must secure approval. These measures aim to tackle Spain’s housing crisis comprehensively, promoting affordability and access while curbing market inequalities.

 

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