The Spanish Government approved this Tuesday in Council of Ministers two royal decrees law with new measures to face the crisis of dwelling. The package includes a reduced VAT of 4% for the construction of public and subsidized housing, zero-interest loans for the purchase of the first home and new rules for rentals.
The measures also contemplate a two-year extension for certain rental contracts, a 2% limit on the annual update of rents and protection against evictions of vulnerable families without a housing alternative.
The Executive plans to take the two decrees to Congress this Friday for validation, although it has not yet been specified when they will come into force.
One of the main announcements is the creation of zero interest loans for those who buy their first home. The mechanism will cover up to 20% of the value of the property that is not covered by mortgage financing, with a maximum of 50,000 euros.
The package also includes tax credits for tenants with incomes of up to 33,000 euros. As explained by the Minister of Dwelling, Isabel Rodriguezthese aid could allow savings of up to one month’s rent and reach approximately 1.6 million households.
In addition, rental contracts that expire before December 31, 2028 may request a extension of two years. The measure will not be automatic and must be requested by the tenants.
