The Senate gave the green light to the new Housing law on Wednesday, May 17. It has not yet been published in the Official State Gazette (BOE) as it has a maximum of 15 days to publication, but they have already published it while waiting for its official release. many keys It was known from the press release issued by La Moncloa.
this law affects both the rental market and its sales. housing, but focuses more on the first.
rental price
Another consideration is rental prices. While the annual rent has so far increased compared to the CPI, it has remained limited to 2% throughout 2023 due to inflation. For contracts in force from 1 to 31 December 2024, the maximum annual increase will be 3%.. This is because until 31 December 2024 The National Institute of Statistics (INE) will have to create a new reference index that homeowners will have to base themselves on to determine the price of the house.
Likewise, the Law provides that: reference index systems have been validated in regional areas. The Moncloa press release does not specify what these regional areas refer to: town halls or autonomous communities?
there is also the possibility declare an area as stressful If either of these two assumptions is met: the housing payment represents more than 30% of the income of the people living in the area, or the price has increased by more than three percentage points from the increase in the CPI. The previous five years These areas can be extended, maintained stressed for three years.
In stressful areas, a number of measures can be implemented to reduce the rental price.
Precautions for lessors: the big owner concept and tax breaks
Some articles of the law directly affect the landlord. One of them is the concept of “big fork”. So far, this has targeted people with more than 10 urban properties (excluding garages and warehouses) or a surface greater than 1,500 square feet.
However, after the Housing Law came into force “big fork” will include them people who have 5 or more properties in the same stressed area, or more than 10 properties if they are distributed to different locations. Therefore, if a person has 3 houses in Valencia and 2 houses in Madrid, they will not be classified as a “big fork”.
On the other hand, regarding taxationit should be taken into account that until now, landlords could deduct 60% of the tax those who pay to own the rental home, regardless of the type of property or the tenant. After that, the discount will decrease to 50% and certain conditions must be met in order to be eligible for further discounts.
For 60% discount on housing It must have been rehabilitated or rehabilitated (not specified what must be done to be considered) before the contract was signed or within the last two years.
On the other hand, landlords will have the right to: 70% reduction If they are renting the house for the first time to a young person between the ages of 18-35 in distressed areas.
The biggest the cutoff is 90%. This is only applicable if the home is located in a stressful area and the landlord reduces the tenant fee by 5%.
Although they may seem like very competitive incentives at first glance, they need to be considered. fine print. “The precaution hurts homeowners in the first place because the base of the discount drops from 60% to 50%. If we want to keep 60%, we will have to improve or rehabilitate the house and we will have to reach 70% or 90%. “area that should be declared with emphasis,” said Antonio Gallardo, an expert.
Moreover, 90% reduction, is necessary Reduces the rental fee by 5%. As an example, if the landlord decides to reduce the price by 5% to take advantage of the 90% tax reduction, let’s take a 50 square meter house in Madrid where a tenant pays 1,000 Euros per month. will result in a loss of about 110 euros.
“What we see is that, a priori, it’s a measure that tries to ‘pay for itself,’ so, There will be many leases that will be paid more to the treasury.Because general rent in non-stressed areas will be taxed more than before,” says the iAhorro expert.
Conditions of rental agreements
One of the items in the text, the tenant should have more details about the rent they will eventually undertake. In particular, the tenant may request information that is considered essential information (specific information is not detailed in the La Moncloa press release).
In addition, Expenses Property Management and formalization of the contract will have to be undertaken by the owner., not the tenant. In this way, when renting a house, the tenant will only have to pay the current month and the deposit.
protected housing
In the case of subsidized housing, the change is in the period when they say the attributes.. At least they should have this status, 30 years and depending on the type of house this period can be indefinite.
Note that it hasn’t worked that way until now. “There were more facilities for subsidized housing to become free,” the iAhorro expert emphasizes. In fact, until now, depending on the Autonomous Community the house can be free for 10 to 30 years after being classified as such.
evacuations
It includes a section that talks about evictions from homes. If the affected person is in a vulnerable situation It will be prioritized that they can find accommodation alternatives through Social Services.
Meanwhile, The upgrade of the said residence will be extended for 1 or 2 months if it is a natural person. and 3 to 4 months for legal entities.
On the other hand, if default plaintiff is a big fork As La Moncloa’s press release puts it, it will be necessary to prove that it was implemented before the house was removed, “conciliation or mediation procedure”.
Penalty for empty houses
municipalities Apply an Property Tax (IBI) surcharge of between 50% and 150%It will depend on the length of time the owner is not occupied and the number of vacant houses the owner owns in the same municipality.
This punishment applicable as long as the property in question has been vacant for more than two years and the affected person has at least 4 homes in the same state.
“IBI charging doesn’t have to help get more homes to market. it should be taken into account that This measure will depend on the municipalities.Therefore, there will be municipalities where this measure is implemented, and there will be municipalities that do not use this measure,” the iAhorro expert assures.