After months of intense negotiations, the Law for the Right to Housing has been published in the Official State Gazette (BOE) this Thursday and will enter into force tomorrow, Friday, except for those related to tax incentives applicable in personal income tax to rentals of real estate for housing, which will come into force on January 1, 2024. The Executive has carried out one of the ‘key laws of this legislature.
This is the first State Housing Law in the history of democracy and is one of the reforms included in the Recovery, Transformation and Resilience Plan and one of the milestones agreed with the European Commission for the disbursement of ‘Next Generation’ funds EU’.
Rent cap limits
Among other measures, the Housing Law imposes new limits on the rise in rental prices throughout Spain, allows the figure of large homeowners to be reduced from ten to five properties in certain cases and prevents these owners from evicting vulnerable tenants without a act of conciliation or prior arbitration.
Specifically, the norm maintains the 2% limit for this year in the rent increase and raises it to 3% in 2024 so that, before December 31 of next year, create a new reference index applicable to the territory outside delIPC.
What is the floor limit to be a big fork?
On the other hand, the law of ten to five properties the concept of large holders and extends to natural persons the restrictions on leased hostels contemplated in stressed areas.
Evictions in the new Housing Law
In addition, the new law introduces a series of measures to make it difficult to evict people in a situation of economic vulnerability, especially when the landlord is a large property owner. In this way, evictions will not take place without a predetermined time and date.
Tax incentives in the new Housing Law
In tax matters, an improvement in the regulation of the Personal Income Tax (IRPF) is established to stimulate the rental of habitual residence at affordable prices, through the modulation of the reduction of the net yield of the rent of habitual residence . To this end, a 50% reduction percentage is established in the new lease contracts, which may be increased based on certain criteria –stressed area, rehabilitation–.
Recharge to the IBI of empty houses
A clear definition is also introduced so that the Town Halls can apply the Real Estate Tax surcharge to those homes that have been empty for more than two years, and provided that the owner has a minimum of four homes in that situation, except for justified reasons of vacancy. temporary.
Likewise, a modulation of the surcharge is established, currently located at 50% of the liquid quota, of which it may reach 150%, depending on the time of vacancy and the number of unoccupied dwellings of the same owner in the municipal term.
What is incentivized affordable housing?
The concept of incentivized affordable housing is introduced, as a necessary figure to increase the supply in the short term. It is about granting tax or urban benefits in exchange for privately owned homes, including third sector entities (associations, foundations), being used for rent at reduced prices for those people whose income level does not allow them to access buy a house at market price.
The Law also contemplates the promotion of protected housing for rent at a limited price. A minimum percentage of 50% is established for housing rental within the reserved land for subsidized housing.
In addition, the land reserve percentages for subsidized housing are increased, from 30 to 40% in developable land (new urbanization actions), and from 10 to 20 percent in unconsolidated urban land (renovation or reform actions of the urbanization).
Why is the Housing Advisory Council created?
The Law also establishes the creation of the Housing Advisory Council, to ensure the participation of all agents in the preparation and development of housing policies.
A collegiate body of a technical, advisory and consultative nature of the State for the programming of public housing policies, which will be made up of representatives of the different Ministerial Departments with competences related to housing, third sector associations and other associations representing affected interests. by law, business and professional representatives, from the financial sector, as well as various experts in housing, from the university or research field.
Protected housing: permanent public protection
The indefinite qualification of subsidized housing is established, always guaranteeing at least a period of thirty years. Basic conditions are established at the state level that define a regime of permanent public protection of subsidized housing that is promised on qualified reserve land. In all other cases, a minimum term of disqualification of 30 years is set.
In addition, the role of the registers of applicants for access to subsidized housing and the setting of the award criteria is reinforced.