News

On October 13, Sumar presented a Royal Decree-Law with urgent measures to intervene in the housing market in Spain. The plan is based on three main pillars: the immediate protection of tenants, the fight against speculation and housing hoarding, and restrictions on the use of tourist apartments.

Among the most notable measures are the freezing of rental prices and the mandatory extension of contracts up to 10 years in stressed areas, even if the property changes ownership. New contracts must maintain the price of the previous one, with this regulation applied generally, immediately, and temporarily until stressed areas are officially declared.

The decree also aims to curb the fraudulent use of seasonal or room rental contracts. Rentals lasting less than 30 days will be considered tourist rentals and subject to a 21% VAT. The rights of long-term tenants will be extended to room renters, including price control.

On the fiscal side, the decree proposes a reform of the Temporary Tax on Large Fortunes, imposing a 5% annual levy on the real estate assets of owners with four or more properties. A 40% corporate tax deduction will be granted to those offering affordable rentals. New property purchases for rental purposes will only be allowed if they are intended for affordable rental, under the limits set by the Housing Law.

Finally, the proposal includes elevating the mandatory registration of tourist rentals to legal status and establishing a stricter sanctioning system to better regulate the market. According to Minister Pablo Bustinduy, these are “effective, feasible, and immediately applicable measures” aimed at “rescuing a housing market hijacked by speculation and protecting the right to decent housing in Spain.”