In a bid to tackle the escalating housing crisis, Spanish Prime Minister Pedro Sánchez announced a set of 12 comprehensive measures on Monday.

Addressing the forum 'Housing, the fifth pillar of the Welfare State' held at the Museo del Ferrocarril in Madrid, Sánchez underscored the pressing nature of housing access which he referred to as 'one of the main challenges facing European and Spanish societies.' This initiative is positioned as a strategic step alongside the ongoing parliamentary reform of the Land Law.

During his remarks, Sánchez highlighted the widening gap between property owners and renters, exacerbated by a rapid increase in European property prices—averaging 48% over the last decade—outpacing family income growth.

The government’s initiative aims to bridge this divide by facilitating access to affordable housing, especially for young people and the working class.

Public Housing and Land Transfers

Central to the reform is the establishment of a public housing company, which will receive more than 3,300 residential units and 2 million square meters of residential land.

This will be bolstered by the immediate addition of 13,000 properties from the SAREB, with an eventual target of 40,000 properties.

The government aims to ensure that state-invested resources benefit the general populace rather than investors.

Permanent Public Ownership of State-Built Housing

Additionally, Sánchez announced that all state-constructed housing will remain publicly owned indefinitely to prevent private acquisition and protect social housing stocks.

Priority Acquisition and Construction Innovation

The new public entity will have prioritized purchase rights to prevent speculative buying of public lands and housing.

A strategic innovation plan for modular and industrialized construction will be initiated in Valencia to lower costs and expedite building times.

Public Guarantees and Tax Exemptions

A public guarantee system inspired by the French model will be implemented.

This system is designed to ensure landlords receive rent payments and provide tenants with access to affordable housing.

Tax exemptions up to 100% will be offered to landlords who adhere to state-set rental price indices, expanding current incentives under existing housing laws.

Regulation of Tourist Homes and Foreign Buyers

The government also proposes subjecting holiday rentals to VAT in certain high-demand areas, a measure aligned with ongoing EU discussions that could significantly increase taxation on this sector.

Further, a proposed tax increase on property bought by non-EU non-residents aims to prioritize housing availability for Spanish residents, responding to the 27,000 homes acquired by non-EU foreign nationals in 2023.

Countering Fraud and Supporting Renovations

Measures to combat temporary rental fraud include strengthening regulations and establishing a fund to enhance local authority inspections.

Support for rehabilitating empty properties will also be offered to encourage their availability as affordable rentals.

Future Housing Strategies

The new state housing plan, effective from 2026, aims to expand existing assistance programs, with a focus on vulnerable groups and those in declining areas.

These actions seek to fortify the public housing sector and ensure equitable access to housing across Spain.

Through these measures, Sánchez aims to address pressing housing challenges, offering myriad solutions to benefit both landlords and tenants while reshaping Spain’s approach to residential housing.