The increase in contributory pensions remains at 2.7%, which, according to the Spanish government spokesperson, translates to an average of €50 more per month for retirees. Non-contributory pensions will also see an increase of 11.35%. Furthermore, this decree maintains the exemption for unemployment benefit recipients from filing an income tax return.
Increased pensions and "protection" for small property owners: this is how Sánchez's two new decrees stand.
Moncloa secures the support of the PNV, remains attentive to Junts, and infuriates Podem
MadridFollowing the veto of the omnibus decree by Junts and the PP, the Spanish government has been forced to fragment it to salvage the pension increase. Furthermore, it has introduced measures favoring small property owners, such as the suspension of evictions, in an effort to secure the votes of the Basque Nationalist Party (PNV). "These are all good measures," argued the Spanish government spokesperson, Elma Saiz, downplaying the reversal that the Moncloa Palace has had to make on this occasion, despite its previous statements., after last week's setback in CongressThe government has separated pensions—both the ruling coalition and the People's Party (PP) support the increase—from anti-eviction measures, introducing new measures in favor of "consensus," according to the Spanish government. What are the changes? While the ban on evicting vulnerable families remains, an exception is made for landlords with one or two properties. In this case, families unable to pay rent will be evicted. The decree states that social services will be responsible for finding alternative housing. In Catalonia, for example, these services are overwhelmed. The decree also establishes another exception: if individuals own three or more properties, evictions will not be halted if the landlord is in a vulnerable situation and a prior rental agreement exists. What constitutes a vulnerable situation? It was defined in the first social safety net decree issued in response to the pandemic and implies, for all intents and purposes, that the total income of the family unit in the month prior to the application does not exceed three times the monthly Public Indicator of Income for Multiple Effects (IPREM). That is, three times 600 euros, which is the monthly amount for 2026: 1,800 euros gross per month.
- General rule for the suspension of evictions
The suspension of evictions for vulnerable families is guaranteed in the case of owners who own more than three apartments.
- Exception for owners of more than three floors
Evictions will not be suspended for vulnerable families if there is a prior rental agreement (i.e., it is not squatting), the landlord owns more than three properties but is not a large-scale landlord, and the family is in a vulnerable situation. It's important to note that the definition of a large-scale landlord is not the same throughout Spain. In Catalonia, in high-demand areas, a large-scale landlord is defined as someone who owns five or more properties. In the rest of Spain and in low-demand areas, the definition is ten or more properties.
- Exception for owners of one or two floors
The eviction of vulnerable families who fail to pay rent will proceed in the case of landlords who own one or more properties. In such cases, social services will be responsible for finding alternative housing.
Regarding squatting, according to sources at the Ministry of Housing, evictions will be halted if the property is vacant, the occupants are vulnerable families, and the owner is a company or individual considered a large property owner. If it is a primary residence, legal proceedings to initiate eviction will be activated within 24 hours. Yesterday, the members of the Basque Parliament assumed that some measure would be included within the framework of the social safety net to try to satisfy their demands, and this Tuesday the Basque Nationalist Party (PNV) announced an agreement with the Spanish government that would align with the position advocated by Carles Puigdemont's party. "Small landlords are allowed to regain the possibility of renting their apartments, preventing further months of non-payment," the PNV explained, warning of the risk that, until now, the person who owned the property could also become a "vulnerable citizen." Podemos criticizes the exceptions.
As these are two royal decree-laws, they come into effect immediately upon publication in the Official State Gazette (BOE). However, they must be ratified by Congress within a month to avoid lapse. The pension increase is guaranteed, but it is currently unclear what will happen with the social safety net.
It has the support of the Basque Nationalist Party (PNV), but it remains uncertain whether Junts will support it. Sources at La Moncloa (the Prime Minister's residence) acknowledge that they have not spoken with Míriam Nogueras's party—they have not negotiated directly since breaking off relations in October—but the Spanish government assumes that the measures agreed upon with the Basque nationalists could be acceptable to them. "It's a band-aid," Nogueras reacted on La Sexta, adding that they will study the fine print.
The problem for Moncloa (the Spanish Prime Minister's office) is that the decision has not been well received by its left wing: Podemos' general secretary, Ione Belarra, has criticized the exception for small property owners: "Poor things, they only belong to the wealthiest group in our society. Absolutely disgusting," she told X. X has reinforced this view, considering that the measure "speeds up evictions" and lamenting that there is talk of "protecting landlords and not families." "If you govern by giving in to the right wing, then you're surprised when they win," she concluded. One of the concerns expressed by the left is that with the exception for small property owners, the protection of the 60,000 families who benefited from the suspension of evictions is left up in the air. Sources within the Spanish government do not provide figures, but assure that the bulk of the ban will remain in place.
Two separate votes
Sumar, the junior partner in Spain's governing coalition, acknowledges that negotiations with the PSOE in recent hours were "intense" and, in fact, concluded this Tuesday morning during the cabinet meeting, as confirmed by Culture Minister Ernest Urtasun in a statement to the media. The party, led by Yolanda Díaz, is pleased that two decrees have been issued: one on the social safety net and another on pensions—at one point, the possibility of issuing three decrees was even considered. For Sumar, unlike Podemos, the changes to the anti-eviction measure are minimal, and they welcome the fact that it goes hand in hand with the rest of the so-called social safety net approved during the pandemic: from the social bonus for vulnerable families to the DANA storm relief aid. They believe that this will prevent the PNV and Junts from being tempted to oppose the other social measures included in the decree. This strategy, in any case, also puts Podemos in a difficult position: will Ione Belarra's party oppose the entire social safety net because they disagree with the exceptions for small property owners introduced to appease Junts and the PNV? The answer, at the latest, will come within a month in the Congress of Deputies.
The fine print
The social safety net decree includes the suspension of evictions, with exceptions agreed upon with the Basque Nationalist Party (PNV), and up to twenty other measures related to the DANA storm and aid for the most vulnerable. Specifically: it extends the energy social voucher and the water and energy supply subsidies until December 31; provides tax incentives for electric vehicles; exempts from personal income tax (IRPF) for compensation for personal injuries in forest fires; extends aid related to the DANA storm; and allows for income tax deductions for energy efficiency improvements in homes.