Government measures to curb the housing crisis
• President Sanchez announced a package of measures to combat rising housing prices, focused on incentivizing affordable rent and limiting speculation.
• An exemption of 100% of personal income tax is proposed for owners who rent according to the benchmark, extending benefits similar to those of stressed areas.
• It seeks to limit the purchase of housing by non-EU residents, increasing the tax levy to 100% to prioritize residents.
• The SOCIMI tax regime will be reformed so that the benefits only apply to affordable rental housing, and tourist flats will be taxed as businesses.
• In addition, a public housing company will be created, the rehabilitation of empty housing for affordable rent will be promoted and a new State Housing Plan will be launched by 2026.
Jon Sutton, Partner at De Cotta Law says it is unclear whether the 100% tax relates to the payment of the annual property tax or purchase tax. A Special tax which already exists in some countries may be introduced. This will not apply to residents and EU citizens.
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