A new law has recently been passed Housing Act in Spain, which introduces several new developments that we should be aware of. Among them is the introduction of new concepts for the legal system that we’ll hear often. It’s important to be familiar with them and understand them so we know how they might affect us.
The first of these is the area known as tight market, which refers to areas where there is a shortage of housing. These areas will be handled by the Autonomous Communities and the various local governments.
On the other hand, there is the concept known as large fork, which is the one that exceeds 10 residential properties. This new concept also includes those who own properties larger than 1,500 square meters for residential use.
This law is expected to take effect as soon as possible, before the May 28 elections. Now is the time to understand how this might affect us, starting from the law takes effect.
What other aspects does the new Housing Act address?
Within this new Housing Act The regulation of rental prices is also mentioned. This will apply to areas considered to be under pressure, for both existing and new landlords, whether large or small. This plan for prevent inflation from rising The target for rents had been set at 2% for 2023.
Now, under the new law, this cap will change to 3% in the coming year. In addition, the INE must establish by the end of 2024 a cost update of the various lease agreements.
What impact will this law have?
Some experts are already discussing the various ways this law might have an impact. In the short term, there could be a significant increase in lease costs in various parts of Spain. This is likely due to people seeking compensation before this new law is enacted in the country.
On the other hand, in the long term, the side effects would be related to the decline in rents. For property owners, it may be more profitable to sell their properties than to rent out the apartments they own. Sales may be on the rise, but the rental market decrease sharply.
The first signs of these changes have already been seen in the prices of some rentals, according to Data from Fotocasa. In March, the increase reached a new record high that reached 9.7% within the market. According to some experts, this trend may continue to grow in the coming months.
Are there any benefits for homeowners?
This new housing law also includes tax breaks and incentives for homeowners. These can be applied within the payment of income tax or within the Corporate Income Tax.
These benefits will take effect each time a new lease agreement with reduced rent. In addition, if the new tenant is between the ages of 18 and 35, they may also apply. Penalties will apply to those who have had vacant properties for more than two years.
This information is required under the new Housing Act
Now that you know about the new Housing Act and the effects it can have, Information is essential. Once this law takes effect, it is important to stay informed about any changes that occur. This will help you avoid any penalty as a property owner or as part of a lease agreement.
