This legislation urges the government to advance initiatives addressing housing challenges, ensure legal certainty, mobilise vacant homes, make housing more affordable, expand public housing, and increase social and affordable rental options.
Spain’s Socialist Workers’ Party (PSOE) submitted the Affordable Home Rental Draft Bill to the Congress of Deputies on 22 May 2025. The legislation aims to improve access to housing, particularly for those reliant on public support, including the middle and working classes.
It urges the government to advance initiatives addressing housing challenges, ensure legal certainty, mobilise vacant homes, and make housing more affordable. The plan also seeks to expand public housing and increase social and affordable rental options.
The key tax measures include:
New real estate transfer tax
A new state tax has been introduced on real estate transfers to non-residents outside the EU, with a 100% rate applied to the taxable base, which is determined as the higher of the market value or the agreed value, subject to certain deductions.
VAT on short-term tourist rentals
Applying the 21% VAT rate to short-term tourist rentals (30 days or less) in towns with over 10,000 residents.
Increased SOCIMI tax on profits
An increase in the SOCIMI (REIT) tax rate for undistributed profits from 15% to 25%, with a 50% or 100% tax reduction if over 60% of real estate is used for affordable rentals.
If passed, the draft bill will take effect the day after its publication in the Official Gazette.
