Spain Prepares New Housing Decree for July Vote

Spain's Council of Ministers has announced the preparation of a new royal decree on housing, which is set to be put to a vote in July. This was reported by the Minister for Inclusion, Social Security, and Migration, Elma Saiz, who called the document an "ambitious" and "comprehensive" plan to address the problem of housing affordability. The decree is divided into two blocks.

The first block includes "measures to lower prices, stabilize contracts, and combat fraud in the rental sector." It speaks of an emergency extension of existing rental contracts, the mandatory drawing up of contracts in written form, and tax deductions for landlords who reduce the cost of rent.

The second part is aimed at "mobilizing affordable housing" and includes raising VAT to 21% for tourist apartments and "measures to simplify administrative processes."

In April, a similar document failed to pass a vote in Congress because the People's Party, Vox, and Junts voted against the decree. This time, according to Culture Minister Ernest Urtasun, the government is negotiating with parliamentary groups, especially with the Junts party, which — after the failure of the April decree — did not rule out supporting a new one on the condition that tax breaks for owners be included and that the application of the European directive on a VAT exemption for the self-employed with a turnover of up to 85,000 euros a year be accelerated.

"The People's Party decided long ago to distance itself from the housing issue. There are rules that prove their effectiveness where they're observed," Elma Saiz added.

She declined to speak in detail about the document, since its content is still being discussed.