Cap on apartment rental prices: waiting for the Government to decide during the spring of 2021…
During the last months (if not years), much has been said in Spain about the possible measures to be applied by all governments in order to increase the stock of apartments and houses for rent, as well as to stop the strong increase in rental prices in those towns where this price increase has been most evident...
It seems that during the month of April of this year 2021, the political parties that make up the central government will begin to close this debate and will reach a common framework of agreements that allows regulating this issue. All of this could be included in the new Housing Law. However, there are still several aspects to be finalized and it does not seem that the debate is completely closed.
In fact, the Minister of Transport, Mobility and Urban Agenda, José Luis Ábalos (PSOE), has insisted in recent weeks that his party is committed to a policy of tax incentives for landlords as a measure to favor reductions in rental prices. In his latest statements collected by the media, he has indicated that with this it will be possible to "put a stop to abusive rent increases".
In this sense, the measures and incentives that the PSOE is evaluating right now would only affect individuals who own rented apartments and could reach up to a 90% reduction in Income Tax if reductions of 10% are accepted in the rental price
For their part, the representatives of Unidas-Podemos are betting on a tougher line, as they consider that the system of tax incentives for landlords will not be enough to contain price increases. For this reason, from this political formation they choose to establish a system of maximum rental price index in those areas that are considered "stressed" at the price level. This price containment system has already been applied in different states of the European Union, although the long-term results do not seem to be as desired in all countries.
Finally, we must also point out that surely the Housing Law will include a definition of what is considered for all purposes "empty housing" to allow in this way that the municipalities can apply surcharges in the IBI to the owners of that type of housing.