The measures announced in January by Prime Minister Pedro Sánchez to improve access to housing were presented in the Chamber of Deputies on Thursday. The Social Democratic parliamentary group has introduced a bill that proposes an increase in VAT on vacation rentals to 21 percent and an increase in the tax on vacant properties. Furthermore, a new state tax on non-resident foreign buyers from countries outside the European Union will be introduced to discourage speculative purchases.
This fiscal package is based on three central pillars: expanding housing construction to address the housing deficit, increased regulation, and tax increases. It includes measures previously announced by Sánchez, such as adjusting the taxation of so-called REITs – publicly traded companies focused on real estate investments. The tax rate will be raised from 15% to 25%, unless the properties are offered as rentals at an affordable price. It also proposes extending the rebates on net rental income in income tax for areas not considered taxed.
Regarding the increase in taxes on vacation rentals, the Socialists aim to reduce the profitability of these vacation rentals and make them less attractive in order to return the apartments to the traditional rental market. An increase in the tax on vacant apartments is intended to create incentives to bring them into the rental market. The package of measures also includes a change to the income tax to extend deductions for energy-saving renovations until 2025, as well as an adjustment to the Public Procurement Law to promote public-private cooperation in housing and address the housing deficit.
Another proposal involves updating the capital gains tables for urban land. This includes regulating the transfer of land and state property to SEPES to allocate them to the affordable housing policy. Furthermore, an amendment to the Public Management of Cultural Heritage Law is being sought to permanently limit the sale price of houses owned by SEPES.
