The Spanish government is working on a comprehensive housing decree that could be approved as early as July. The package proposes far-reaching changes to rental law and aims to tighten regulation of the holiday rental market. The goal is to ease ongoing pressure on the housing market and ensure more affordable housing.
Spain Expat Press Editorial Team
by Marlon Gallego Bosbach
According to government sources, the decree is currently in its final stages of preparation and is expected to be approved by the Council of Ministers. The measures affect both long-term rental agreements and short-term holiday lets, and could therefore have a significant impact on the Spanish property market.
Extension of rental contracts and greater protection for tenants
A key element of the proposed package is the extension of existing rental contracts. In many cases, these are expected to be automatically renewed in order to provide tenants with greater stability and to prevent short-notice evictions or sharp rent increases.
In addition, measures are being discussed to place tighter limits on rent increases. The aim is to avoid sudden price spikes, such as those seen in many Spanish cities in recent years. The government is focusing on stronger regulation of the rental market in order to stabilise housing costs in the long term.
Stricter taxation of holiday rentals
Another key point of the decree concerns the booming market for tourist rentals. Holiday apartments have been criticised for years, as they are seen in many regions as contributing to housing shortages and rising rents.
Among the planned measures is a significant tax change: holiday rentals could in future be subject to a 21% VAT rate. This would make them more heavily taxed than traditional long-term rentals. The government hopes this will encourage a shift towards more permanently rented housing.
In addition, regulations for short-term and seasonal rentals are set to be tightened in order to create greater transparency and control in this segment.
Further measures in the housing sector
In addition to rental and tax issues, the proposed decree includes further regulatory measures. These include stricter requirements for rental contracts, improved traceability of rental agreements, as well as potential tax incentives for landlords who reduce rents or offer long-term leases.
Measures to combat abuse in the rental sector are also planned. These are intended in particular to tackle problematic practices in the area of short-term rentals.
Politically controversial proposal
Despite the far-reaching plans, the proposal is politically controversial. Similar reforms have faced opposition in parliament in the past or have only been partially implemented. Approval is not guaranteed this time either, as different political parties hold contrasting views on how the housing market should be regulated.
The government nevertheless sees the decree as a necessary step to address persistently high rental prices and the strained housing situation in many cities.
A market under pressure
The Spanish housing market has been under pressure for years. Rising demand, limited supply and the impact of tourist rentals have led to significant price increases in many regions. In major cities and coastal areas in particular, affordable housing is becoming increasingly difficult to find.
With the new decree, the government is now attempting to counter this trend and regulate the market more strictly, introducing measures designed both to ease pressure on tenants and to limit the impact of holiday rentals.
