As of 8 October 2026, the Spanish Government’s new housing decree enters into force, introducing a package of fiscal measures aimed at easing residential market pressure. Published in the Official State Gazette (BOE) under Royal Decree-Law 8/2026, the legislation modifies Personal Income Tax (IRPF) deductions for tenants and landlords, revises the calculation of municipal capital gains tax (plusvalía municipal), and establishes new exemptions for social housing providers. The measures form part of the executive’s broader strategy to increase affordable housing stock and regulate rental prices in tensioned zones.
Key Takeaways
- IRPF Deductions Expanded: Tenants aged under 35 or in vulnerable situations can now deduct up to 20% of annual rent payments, capped at €1,200 per year, provided the lease is registered in the new public rental registry.
- Municipal Capital Gains Reform: The plusvalía municipal calculation shifts from a cadastral value-based method to a real transaction value model, allowing taxpayers to prove no actual gain occurred and avoid the tax entirely.
- Landlord Incentives: Property owners who reduce rents by at least 5% in tensioned areas qualify for a 90% reduction on net rental income declared under IRPF, effective for contracts signed after the decree’s publication.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement