The housing law has come into effect.

New changes to housing legislation for large property owners, developers, and funds operating in the real estate sector have come into effect in Spain. The new law guarantees the right to housing and includes a number of key points.

Key points of the new law:

• Refusal to use the consumer price index for updating rent.
• Establishing areas with a tight housing market and measures to curb rental prices
• Tax benefits for certain landlords and additional payments for property tax on vacant housing.
• Increase in the reserve for social housing
• Housing remains under state protection with some exceptions.

The new legislative initiative will come into effect on May 26, 2023, but some measures will be implemented gradually. Lease agreements signed before the law takes effect will continue to operate under the old rules.

The introduction of additional payments for real estate that is vacant without tenants will require official confirmation of the status of the unoccupied property. Tax benefits will start to apply from 2024. A procedure for resolving conflicts in vulnerable situations will be established.

Listen to the podcast about the new law: