Spanish cabinet approves bill penalising empty homes, rewarding lower rents

27/10/2021 6:38

        Spain's first housing law inched closer to becoming a reality on Tuesday after the cabinet approved a draft text that will reward landlords who lower rents
        and penalise those with multiple empty homes.
        
        The ruling Socialist Party had been at loggerheads with junior coalition partners Unidas Podemos for months over the bill but hammered out an agreement last month as part of a broader accord to pass the 2022 budget.
        
        Under the law, regional governments can declare areas as in "high demand" when the average household spends over 30% of its net income on rent or mortgage costs and bills and if property prices have risen more than 5% above inflation.
        
        A general income tax rebate for landlords will drop to 50% from 60% but will stay at the same level for those who have refurbished or improved their properties in the last two years.
        
        It would rise to 70% for landlords who put properties on the market for the first time and rent them to people aged 18-35, or who make their properties available for state-subsidised social housing