The Spanish government is considering penalizing landlords who raise rents with income tax.
The government is negotiating how to balance benefits and disincentives after the row between the PSOE and Sumar parties.
BarcelonaAfter the internal booing within the Spanish government Following the PSOE-Sumar coalition government's push for tax cuts for landlords, Pedro Sánchez's administration is considering a shift in this fiscal policy. Specifically, it is working on a proposal that combines incentives for those who lower rental prices with penalties for those who raise them, as announced this Friday. The Country And sources from the Ministry of Housing have confirmed this to ARA.
These same sources warn that nothing is finalized and that the measure is in line with combining incentives of up to 100% for those who lower the rental price and disincentives for those who raise it. Specifically, the general 50 percent deduction on income tax would be adjusted for those who decide to charge more, but "in no case" would it reach 0 percent, because a differential treatment would still be maintained for long-term residential rentals (five-year contracts) compared to tourist or seasonal rentals.
"Giving away public money to landlords is a mistake," said the Second Vice President of the Spanish government and leading figure of Sumar, Yolanda Díaz, a few weeks ago after learning of the measure announced by the Socialist president, Pedro Sánchez. His party openly opposed applying a tax break of up to 100% on rental income for landlords who do not increase their rent when the contract is up for renewal, whether in a high-demand area or not.
