The Spanish government has launched an ambitious package of housing measures designed to address the severe affordability crisis affecting thousands of families across the country.

President Pedro Sánchez declared the situation as critical and revealed a comprehensive strategy comprising twelve new initiatives aimed at tenants, homeowners, and businesses.

The primary objectives, as stated by Sánchez, are 'more housing, better regulation, and increased support.' According to government sources, these measures aim to rectify dysfunctional market elements through substantial public intervention, drawing on similar approaches used successfully in the energy sector.

New State Housing Company
The first set of measures involves the establishment of a new state-owned housing company.

Sánchez announced the transfer of more than 3,300 homes and nearly two million square meters of residential land to the company, which is under the Ministry of Housing.

These assets will enable the construction of social rental properties.

Additionally, the company will incorporate 13,000 homes from Sareb, the former 'bad bank', along with 17,000 more being progressively added.

This organization will have precedence in acquiring properties and land, supplementing regional authorities' rights.

The acquisition of existing residential properties for conversion into affordable rentals is a priority, according to government insiders.

Protection of State Housing
The government plans to safeguard state-owned housing, legally ensuring perpetual public ownership of all properties constructed by the state, reaffirmed by Housing Minister Isabel Rodríguez in a recent interview.

Innovation in Construction
Another major announcement was the launch of a housing-focused Strategic Project for Economic Recovery and Transformation (Perte), emphasizing industrialized and modular construction innovation.

The initiative, which responds to demands from developers and builders, is set to commence in Valencia, aiding economic recovery following severe weather damage.

Support for Landlords and Tenants
The government introduced a public guarantee system to protect landlords and tenants participating in the affordable rental market.

This aims to eliminate legal insecurity and fears surrounding renting by assuring landlords of rent payments and increasing affordable rental options.

This model is inspired by successful implementations in regions like Euskadi and Navarra and will initially target landlords renting to those under 35.

Tax Exemptions for Affordable Rentals
A proposed fiscal reform aims to provide significant income tax relief for property owners renting at prices aligned with the State's Reference Price Index.

These changes could offer a 100% income tax exemption, encouraging landlords across the country, even in conservative-governed areas, to adhere to state pricing.

Tourism and Housing
Sánchez also outlined plans to reclassify tourist rental properties as businesses, subjecting them to economic activity taxes, including a 21% VAT, in areas affected by housing shortages or excessive tourism.

This proposal, originally part of broader fiscal reforms, is currently under European consideration.

Non-Resident Foreign Buyers
The government is also moving to deter purchases by non-resident foreign buyers by potentially doubling taxes they face when acquiring properties in Spain.

This measure draws inspiration from policies in Denmark and Canada and aims to prioritize housing availability for residents amid significant shortages.

Fraudulent Rental Practices
Additional regulatory changes will target seasonal rental fraud, with funds allocated to local governments for enhanced inspection of illegal tourist accommodations.

Future Plans and Legislative Reform
Lastly, the new State Housing Plan, effective from 2026, intends to expand current aid programs with a special focus on seniors, youth, disabled tenants, and residents in degraded areas.

These initiatives are to be accompanied by a pending and debated Land Law reform, which seeks to streamline housing sector processes yet lacks broad political support for passage.