Spain's New Housing Decree: Key Measures and Regulations

• The new housing decree introduces extensive regulations on rentals, eviction protections, and tax incentives for landlords and tenants.
• It implements a systemic approach to preventing evictions for vulnerable individuals while restricting certain property acquisitions.
• New rental contract rules address temporary housing, maintenance responsibilities, and price indexation using the IRAV.

Eviction Protection and Property Acquisition

• Eviction Suspensions:
  • Speculative entities: Evictions suspended until the end of 2030 without compensation.
  • Non-speculative entities: Mandatory housing alternatives provided by authorities for vulnerable tenants; if unavailable, the state covers rent.
  • Other cases (landlords with 3+ homes): Suspensions until 2030, with compensation for lost income, excluding speculative gains.
• Investment Restrictions:
  • Entities are prohibited from buying residential property for less than 70% of market value until 2028, with exceptions for social housing or by signing a "Good Practice Code."

Rental Market Regulations

• Rent Controls:
  • Annual rent increases are capped: 0% if current rent is above the Ministry index, and a 2% maximum if below, through 2027.
  • The IRAV (Index of Rental Reference) replaces the IPC for all annual contract reviews.
• Contractual Rights:
  • Temporary and room-rental contracts are now fully integrated under the LAU (Urban Tenancy Act).
  • Tenants can execute urgent repairs if the landlord fails to respond to written notifications within 15 days, deducting costs from rent.
  • The right of first refusal (tanteo y retracto) is now mandatory, even for block property sales.
  • Early termination indemnities for tenants are prohibited.

Tax Incentives and Financial Measures

• Landlord Incentives:
  • Tax deductions for landlords range from 15% to 100% depending on the price reduction offered to tenants and property usage.
  • Higher deductions apply for renting to youth (18–35) or providing housing in "stressed" market zones.
• Tenant Support:
  • Tenants earning under €33,000 annually can claim a 10% tax deduction on rent, capped at €1,163 for those earning under €23,000.
• Financing:
  • The "Tu Casa" program offers interest-free ICO loans for down payments (up to 20% of value/€50,000), repayable after the primary mortgage term.