Evictions of vulnerable people suspended until 2030 and extension of rents: the keys to the decrees

MadridWhile waiting to know the final texts of the two housing decrees that the Spanish government approved this Tuesday —the Minister of Housing herself, Isabel Rodríguez, has acknowledged that they were open until the last moment—, these are the keys to the main measures.

Evictions

Some evictions of vulnerable families—it must be proven—who do not have a housing alternative are prohibited until 2030. Until this Monday evening, the text made a distinction between a large investment fund (evictions are automatically suspended) and a private individual. In this second case, the judge must stop the eviction if the competent administration has not been able to offer a housing alternative. Furthermore, it would be this administration that would compensate the owner.

However, there are still some nuances to be specified: the review that the judge must perform and whether the eviction affects an owner who has one or two properties. In this latter case, their "economic vulnerability" would prevail over that of the tenant.

Extension of contracts

The extraordinary extension of current contracts is recovered until December 31, 2028. It will be possible to request from the landlord a rental extension of up to two years (it must be reviewed annually) as long as one is up to date with rent payments or if the rent has been paid for the 8 months prior to the request for the extension. The landlord has the obligation to accept the extension if an alternative agreement is not reached; a new contract is signed or the need to recover the property has been communicated.

In the second decree, the "automatic renewal of rentals" is contemplated. This responds to the demand of the Tenants' Union, but also of the left-wing parties, to approve indefinite rental contracts.

Definition of vulture fund

The Spanish government has ensured that an end is put to "speculative" purchases by large investors and that what a "vulture fund" is is well defined. Sources from the Ministry of Economy explain that a balance has been found. The key here will be to see if it is defined based on the speculative practice (the type of buying and selling they do) or based on their legal form.

Seasonal apartments and rooms

The aim is to put a brake on seasonal apartments and rooms. Regarding the former, the measure of a VAT on tourist apartments is being recovered. Specifically, 10%. The regulation of room rentals will be similar to the rule currently being processed in Congress, explained the Minister of Housing. This was left out of the text that was being negotiated and has been incorporated at the last minute.

Tax aids

Fiscal incentives are offered to both tenants and landlords. In the former case, public guarantees with almost non-existent interest are also incorporated to be able to access a property for ownership. Fiscal incentives for landlords are offered to mobilize properties: in case of rent price containment or even reduction.

SOCIMIs

The Spanish government is reviving the 2025 proposal regarding Socimis. Specifically, for those Socimis that own rental apartments, the taxation on a portion of profits not distributed through dividends is being increased from 15% to 25%. Therefore, it does not apply to all profits. The increase does not affect those Socimis that manage offices, warehouses, or shopping centers, as is the case with the Catalan company Colonial. However, the increase provides for significant deductions provided that the assets (properties) are intended for affordable housing or if the profit obtained is reinvested in affordable rental apartments for a few years.