On 14 October 2026, the Spanish Government published detailed implementing regulations for the housing fiscal package approved in Royal Decree-Law 6/2026, introducing targeted tax incentives for residential landlords who voluntarily reduce rents by at least 5% in stressed rental markets. The measures modify Personal Income Tax (IRPF) deductions and introduce new municipal surcharge reductions to improve rental affordability.
Key Takeaways
- Enhanced IRPF Deduction: Landlords lowering rents 5% in designated stressed zones qualify for a 90% deduction on net rental income (up from 60%), potentially reducing effective tax rates from 19-28% to under 3%.
Municipal IBI Bonuses: Local governments may grant up to 50% reduction in Real Estate Tax (IBI) for properties adhering to rent limitation agreements, funded partially by state compensation transfers. - Anti-Abuse Safeguards: The regime includes clawback provisions if rents are raised above inflation indices within five years, and requires registration in a new public rental price observatory.
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