Overview

• The PSOE has introduced a comprehensive housing reform bill in Congress, including measures such as a new tax on non-EU property buyers, a 21% VAT on tourist rentals, and fiscal incentives for landlords offering below-market rents.
• Sumar, the PSOE's coalition partner, opposes the bill's fiscal incentives for landlords, calling for stronger market interventions like rent caps instead.
• The real estate sector criticizes the proposal, questioning the legality of the foreign-buyer tax and labeling the package as impractical and politically motivated.
• The bill also proposes increased taxation on vacant properties and SOCIMIs, with higher rates for non-distributed profits unless tied to affordable housing.
• Negotiations are underway within the coalition to secure support for the bill, which faces significant hurdles in gaining parliamentary approval.