What are the topics that stall the anti-eviction decree?

Madrid / BarcelonaLast Wednesday, from New York, Pedro Sánchez described the eviction of Maricarmen Abascal as a "social tragedy" and immediately pledged to push forward the new housing decree that, until now, had been kept in a drawer due to a lack of parliamentary support – the Spanish government was supposed to present the regulation before the summer. The Spanish government is negotiating against the clock with its partners for a new decree so that it can be on the table of the Council of Ministers this very Tuesday. Junts and the PNV on one side and Sumar and Podemos on the other are the ones with the most opposing positions.

The 'juntaires' already submitted their proposal regarding housing – they did so on September 3rd – to which ARA has had access, and which, apart from the measures they had already been announcing, includes two additions: the prohibition of evictions for vulnerable families when dealing with vulture fund properties and directly prohibiting these entities from buying real estate. Now the Spanish government will have to reconcile these requests with those of the rest of its left-wing partners. And here, several points of friction emerge that the socialists will have to know how to reconcile to try to get everyone into the equation and for the decree to see the light of day.

Anti-eviction measures are the main hot potato. The decree that was presented in February – and which fell due to the 'no' from Junts, the PP, and Vox – included a ban on all evictions for families in vulnerable situations. A measure that all left-wing parties defended. To try to woo Junts, the Spanish government had introduced some changes, among which was allowing the eviction of families who did not pay rent when the landlord owned only one or two properties. In this case, it was also to be the administrations and their social services that sought an alternative.

For the Junts members, it was key that the administration take charge of this alternative so that it would not fall upon small property owners. "Attention to situations of residential vulnerability corresponds to public housing policies," they say in the proposed decree of measures, and "not to the conversion of the private owner into the subject obligated to assume these costs." However, Junts sources consulted by ARA assure that they have sent an alternative to the PSOE: to distinguish between "large and small property owners." That is to say, they do look favorably upon applying anti-eviction measures in cases like Maricarmen's, but not if it involves "small property owners." The socialists say that the proposal they are preparing is not the one that Junts has struck down on other occasions, but rather a "structural measure that removes the burden from the small owner and places it on the administration."

However, this differentiation between small and large property owners did not please Podemos at the time, because they considered that this "speeded up evictions," said the party's general secretary, Ione Belarra. At that time, the left-wing parties already expressed their concern because, with this distinction, the protection of the 60,000 families who benefited from the suspension of evictions remained up in the air. Following the case of Maricarmen Abascal in Madrid, Sumar has also proposed, directly, expropriating the apartment of this 87-year-old grandmother who was evicted on Wednesday. Yolanda Díaz's party wants this proposal to be approved in the council of ministers next Tuesday, but the PSOE has already closed the door on it. The Minister of the Presidency and Justice, Félix Bolaños, has stated that he is not in favor of these formulas because "they lead nowhere and do not have a clear fit within the Constitution."

The extension of rental contracts

The extension of rental contracts has also been, until now, another point of friction. In fact, Junts, alongside the PP and Vox, struck down the decree that included this extension in April. The Junts members propose that this extension be "voluntary," while the left-wing parties want it to be mandatory. "The parties to habitual residence rental contracts that end before June 30, 2028, may agree to an extraordinary extension of up to two years," says the decree proposal from Junts to which ARA has had access.

The regulation that fell through this spring had the backing of Sumar, Podemos, and ERC and incorporated the extraordinary extension of rental contracts that were ending between March 22, 2026, and December 31, 2027. Furthermore, it also incorporated the limitation of the annual update of contracts to 2%.

Tax incentives

The point where the Spanish government and Junts are closest is on the issue of the tax incentives that Carles Puigdemont's party is requesting. Junts proposes creating three new tax deductions and one exemption. To begin with, a 15% personal income tax (IRPF) deduction for the acquisition of a primary residence or for housing intended for long-term rental, excluding seasonal or tourist rentals. With a maximum base amount for tax relief of 11,630 euros per year – that is, a maximum of 1,744.50 euros in annual tax relief. They also propose a 15% deduction on amounts deposited in savings accounts intended for the acquisition of housing or the renovation of a primary residence; and also a 15% deduction for the rent of a primary residence for incomes equal to or less than 33,007.20 euros per year.

They also propose a tax exemption for owners who sell vacant apartments to the public administration, with the goal of expanding the public rental stock. An exemption that they also maintain in the case of elderly people who sell a home because they are in a nursing home or a relative's house due to age or dependency issues, regardless of how long it has been since they lived there, if it has been their primary residence. Beyond the personal income tax deductions, they also propose the creation of a super-reduced VAT of 5% for the acquisition of a primary residence, without it being applicable, says the proposal, to the purchase of housing intended for investment. At the same time, they include a reform of the Civil Code to "protect people with mortgages on their primary residence against the assignment of their credits".

Sumar has opened up to negotiating tax deductions for owners, but Podemos opposes it. ERC had also defended changes in fiscal matters, but placing the emphasis on large property owners. The challenge for the Ministry of Housing and Urban Agenda is not minor: it will have to bring together the interests of all the partners before Tuesday.