The Government confirms personal income tax discounts of up to 90% for those who rent at affordable prices

2023-04-19 22:17:17

The First Vice President of the Government and Minister of Economic Affairs and Digital Transformation, Nadia Calviño, confirmed today in Congress that the Housing Law includes tax credits in the IRPF declaration of between 50% and 90% for owners who rent homes at affordable prices. This was said in response to the challenge raised by the PP to explain the measures he intends to adopt to “reverse the loss of disposable income and the impoverishment of families, aggravated by a confiscatory fiscal policy.”

In his speech, Calviño brought up the Housing Law agreed with ERC and Bildu to limit the rise in rental prices and regulate it in stressed areas. The vice president defended herself against the criticism of PP deputy Percival Manglano on poor economic management, detailing that the law contains tax discounts between 50% and 90% in personal income tax for owners who rent at affordable prices, that the youth rental voucher “is already benefiting 70,000 young people” and what of the plan for 100,000 social homes “60% is underway”.

After fourteen months stuck in its parliamentary process, the negotiation of the Housing Law was unblocked last Friday with a political agreement between the PSOE, UP, ERC and Bildu. The agreement includes that the increase in all housing rents in the annual renewal of contracts will be limited to 3% in 2024 and that a new reference index will then be applied which, in no case, will exceed the CPI. The law also includes the creation of stressed price zones, which will be declared by the autonomous communities; in which all prices will be capped, although more severely in the case of large holders, which will be those with more than five homes. The autonomous communities may declare a stressed area if the average cost of the mortgage or rental cost plus basic expenses and supplies exceeds 30% of the average household income or if the purchase or rental price of the home has increased at least three points above the CPI in the previous five years.