Spain Considers Legislation to Improve Access to Housing

Spain proposes new legislation to enhance housing affordability and availability.

On May 22, 2025, Spain’s Socialist Workers’ Party (PSOE) presented the Affordable Home Rental Draft Bill to Congress, aiming to comprehensively tackle the country’s escalating housing crisis. The proposed legislation includes a range of policy initiatives intended to increase affordable housing stock, strengthen tenant protections, and reduce speculative real estate activities that drive up prices. Among the bill’s key features is the introduction of a real estate transfer tax targeted at non-resident property owners from outside the European Union, designed to discourage speculative property acquisitions that limit housing availability for local residents. The bill also seeks to align taxation of short-term tourist rentals by applying the full 21% VAT rate, placing these rentals on par with traditional accommodations and curbing their growth. Furthermore, the draft proposes increasing the SOCIMI (Spanish REIT) tax rate on undistributed profits to encourage the distribution of earnings, which could help temper market speculation. The legislation sets out ambitious targets for expanding social and affordable housing, including mobilizing vacant properties and streamlining frameworks to bring more units into the rental market. By fostering greater legal certainty for tenants and landlords and promoting fair dispute resolution, the bill aims to stabilize rent levels and improve access to housing across Spain. If enacted, these measures will significantly influence property management practices and investment strategies, balancing the demands of economic growth with social equity priorities.
https://www.regfollower.com/spain-legislation-to-improve-access-to-housing-2025