Rules for the right to decent housing and rent

Automatic summary, not yet reviewed

1. For the first time, the law sets basic conditions that are equal across the country for the right to decent and adequate housing, and regulates the content of the property right over a home according to its social function.
2. It defines key concepts such as decent and adequate housing, protected housing, incentivized affordable housing, and large holder, meaning anyone who owns more than ten residential properties or more than 1,500 square meters.
3. Public authorities can declare stressed residential market areas when the cost of a mortgage or rent exceeds 30% of household income, or when prices have risen much faster than inflation. The declaration lasts three years and requires a specific plan.
4. In those stressed areas, the rent of new contracts cannot exceed that of the previous contract once updated, with maximum increases of 10% only in specific cases. If the owner is a large holder, the price is capped by the reference price index.
5. New income taxincome tax The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings. incentives are created for landlords: the reduction on net income ranges from a general 50% up to 90% if the rent is lowered by at least 5% compared to the previous contract in stressed areas.
6. City councils can apply a surcharge on the local property tax (IBIIBI Impuesto sobre Bienes Inmuebles, the municipal property tax paid by owners of homes and premises.) to homes permanently vacant for more than two years, up to 150% of the tax bill, depending on how long they have been empty and how many vacant homes the same owner has.
7. In evictions and mortgage foreclosures, if the claimant is a large holder and the occupant is vulnerable, a conciliation or mediation procedure must take place first, and the court can suspend the process for two months (individuals) or four months (companies).
8. Annual rent updates are capped at 3% during 2024, and the National Statistics Institute is asked to create a new reference index for updating rental contracts.

Who it affects

• Tenants and home seekers: They have the right to full information before buying or renting, and in stressed areas the rent of new contracts is capped.
• Landlords, especially large holders: They must report to the authorities about their properties in stressed areas, face rent caps, and pay the real estate management costs of the contract.
• People at risk of eviction: Conciliation steps and court suspensions are reinforced when there is economic vulnerability.
• City councils: They can use the local property tax surcharge against permanently vacant homes.
• Young people aged 18 to 35: Landlords who rent to them for the first time in stressed areas get a larger income tax reduction.

Words worth knowing

Gran tenedor (large holder)

A person or company owning more than ten residential properties, or more than 1,500 square meters, excluding garages and storage rooms.

Zona de mercado residencial tensionado (stressed residential market area)

An area where renting or buying is very expensive compared to household income, or where prices have risen much faster than inflation.

Vivienda asequible incentivada (incentivized affordable housing)

Private housing whose owners receive public benefits in exchange for renting it at reduced prices to people with low incomes.

Tanteo y retracto (preemption and withdrawal rights)

Rights that allow the public administration to buy a home with preference when it is sold.

IBI

Impuesto sobre Bienes Inmuebles, the municipal property tax paid by owners of homes and premises.

income tax

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

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries