Bill proposing longer leases and tax breaks for rentals

Automatic summary, not yet reviewed

1. The bill would extend the minimum length of housing leases: if the agreed contract lasts less than five years, it would automatically renew year by year until reaching that minimum, unless the tenant gives 30 days notice. After five years, an annual renewal of up to three more years would apply.
2. The landlord could only refuse renewal to move in themselves or close family if that was stated in the contract; if no one moves in within three months, the landlord would have to reinstate the tenant or compensate them.
3. During the first five years, rent could only be raised using the Consumer Price Index, and the security deposit would not be adjusted in that period. Additional guarantees the landlord may require would also be capped depending on the rent.
4. The bill would distinguish leases of a regular home from tourist and seasonal rentals, and would create the categories of dotational housing and social housing in the land law, with land reserved for them.
5. In evictions involving the forced removal of occupants from a primary home, the court ruling would be sent to the relevant social services.
6. The bill proposes tax benefits: a 60% reduction in personal income taxincome tax The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings. for landlords renting at capped prices (up to 100% if the tenant is 18 to 30 years old), a 10.05% deduction of rent for low-income tenants, an exemption for reinvesting in rental housing, a wealth tax deduction, and a reduced 10% VAT for works on rented homes.

Who it affects

• Tenants of their regular home: Longer, more stable contracts, rent increases tied to the CPI, and limits on required guarantees.
• Landlords who rent out homes: Less freedom to recover the home before five years, but with reductions in personal income tax and wealth tax.
• Young people aged 18 to 30 who rent: Their landlord could pay no tax on the rent if they meet the income requirements.
• People at risk of housing exclusion: Social services would be notified before evictions, and social housing registries would be created.
• Public administrations: They must approve a funding plan for dotational and social housing and sign cooperation protocols.

Words worth knowing

Prórroga obligatoria (mandatory renewal)

The landlord's duty to keep the lease going beyond the agreed term if the tenant wants to stay.

Fianza (security deposit)

Money the tenant hands over when signing as a guarantee, returned at the end if there are no debts.

Lanzamiento (eviction)

Court-ordered removal of occupants from a home.

Vivienda dotacional (dotational housing)

Housing on public land for temporary stays by young people, seniors, or groups with special needs.

IRPF (personal income tax)

Spain's tax on individuals' income, including rental income.

income tax

The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings.

It summarizes the text as it was introduced. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries