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Madrid Puts Up €45,000 Interest-Free Per Home to Turn Empty Flats Into Affordable Rentals

EMVS guarantees owner income through 5–10 year usufruct agreements by taking over full tenancy management.

Overview

  • The city offers advances up to €45,000 at 0% interest for renovation, with the municipal company also covering VAT.
  • Owners repay the advance via deductions from the rent they receive over the term of the usufruct contract.
  • EMVS pays IBI and community fees, provides home insurance, handles ordinary repairs, and covers plusvalía and registry costs.
  • Tenant access is limited to incomes up to 5.5 times IPREM, with rents set 15–20% below market and capped at 30% of income.
  • The program now manages nearly 200 homes; a two-bedroom in Moncloa-Aravaca was refurbished for €37,000 and will carry a maximum rent of €745 a month.