The Official State Gazette (BOE) has published this Wednesday the two new housing decrees promoted by the Government, after they were rejected last week in the Congress of Deputies. The first of them, which concentrates most of the measures, will mostly come into force tomorrow, one day after its publication, except in those sections where otherwise established. The second, focused on the automatic extension of rentals, will do so on November 15.
Unlike what happened last week, both decrees have been published at the same time in the BOE, and must now pass through the Permanent Deputation after the call for general elections for next November 29. In that process, the first of the texts is likely to go ahead with the support of the PNV, while the second, promoted by Sumar and the Tenants' Union, does not have that backing.
A package of 21 measures with new contributions
The PSOE-Sumar coalition government yesterday again brought to the Council of Ministers a package of 21 housing measures, accelerated by social pressure after the eviction of octogenarian Maricarmen Abascal and less than two months before an election. According to the Executive, the content maintains “the essence” of the two decrees repealed last Friday, although it incorporates relevant novelties.
Among the contributions included in this first decree, of 99 pages, is a financing line endowed with 10,000 million euros in loans of up to 50,000 euros at zero interest for those who want to acquire their first home.
Also applicable is what is provided in the first final provision to transfers of mortgage loan contracts made after the entry into force of the royal decree-law, regardless of when the contract had been concluded. Likewise, the Europe Finance Savings and Investment Account may not be marketed or contracted until the entry into force of the corresponding ministerial order, and individual insurance policies will also have to wait for said order.
In relation to the speculative purchase by the so-called “vulture funds”, the limit goes from 2028 to 2030, and focuses fundamentally on funds that buy at bargain prices, large owners and their subsidiaries.
Evictions, rentals and taxation
Regarding evictions, the text establishes that, in cases of rental non-payment, if the family cannot pay and has no alternative, the Administration covers the debt and court costs. In addition, it sets until December 31, 2030 a regime for the suspension of eviction procedures for vulnerable people without housing alternatives, along with an extraordinary extension of habitual housing rentals until 2028.
The decree also sets a 10% VAT on tourist apartments and modifies the tax regime of SOCIMIs in their residential activity through an increased tax rate on undistributed profits from the rental of homes.
Deferred application in the second decree
Regarding the second decree, which includes the automatic extension of rentals, the text emphasizes that the application of the new regime to current contracts only applies to maturities subsequent to its entry into force and is accompanied by a transitional regime that defers some of its effects.
Communications of non-renewal made prior to the publication of said royal decree-law will retain their effectiveness and will not give rise to compensation, not even when the contract is extraordinarily extended. In contracts that expire in the following six months, the landlord can continue to give notice with four months in advance.
In cases where the landlord validly communicates the will not to extend, they will be obliged to compensate the tenant either with 12 monthly payments —calculated according to the state reference system for housing rental prices— or with one monthly payment —calculated according to the same value for each year that the tenant has resided in the home—.