Spain's cabinet approved two decrees on Tuesday aimed at easing the country's housing crisis, responding to mounting public pressure and a wave of protests. The measures include stronger eviction protections, limits on speculative purchases, tax incentives, and a zero-interest loan scheme for first-time buyers.
Housing Minister Isabel Rodríguez called housing "the main problem facing Spaniards" and described the crisis as particularly "complex." The decrees were approved after tense negotiations within the coalition government, with the cabinet meeting starting more than an hour late due to disagreements over concessions to Junts, the Catalan pro-independence party whose support is crucial in Congress.
Four pillars of the main package
The first and broader decree focuses on four areas: protecting tenants from evictions, curbing speculation, tackling rental market abuses, and improving affordability.
On evictions, the government plans to extend the "social shield" until 2030 to protect vulnerable people at risk of losing their homes. Rodríguez referenced the case of Maricarmen, an 87-year-old woman evicted from her Madrid home this month, saying, "We do not want any more cases like Maricarmen's."
To curb speculation, the government intends to identify companies engaged in speculative housing purchases and stop them from "trading in an essential good." It also plans to act on acquisitions by vulture funds and use the tax system to steer investment toward affordable housing.
The third pillar targets fraud in the rental market, particularly short-term and room-by-room contracts that bypass residential rental rules. Rodríguez also pointed to illegal tourist apartments, which she said should be shut down by regional authorities. The government is proposing a new 10% VAT on tourist apartments.
Tax breaks and zero-interest financing
The fourth pillar aims to improve affordability and access to housing. The government announced tax breaks for landlords, which it says could allow some families to save the equivalent of one month's rent. It also introduced "Tu Casa," a zero-interest financing scheme to help people buy their first home, and cut VAT to 4% for protected and publicly developed housing.
The second decree focuses on rental stability, addressing "a very specific aspect" of the crisis, according to Rodríguez. It aims to provide greater security for tenants, allowing them to live in rented accommodation "with peace of mind."
The government is seeking to fast-track the measures through parliament, asking Congress to hold an extraordinary session on Friday. Rodríguez described the law as "ambitious" and insisted there is "a broad social consensus in our country around these measures to ease the housing crisis."
Despite the decrees, housing protests continue. The Tenants' Union and other groups have set up an encampment in Madrid's Puerta del Sol, and demonstrations have been held in other Spanish cities. The groups have said they will keep the encampment regardless of the cabinet's decision. Regional authorities have given the central government's delegation 48 hours to dismantle the site, warning they would take the matter to court if it is not removed.
The housing crisis has become a major political issue in Spain, with the eviction of Maricarmen sparking nationwide protests. The government's response is being closely watched, as protesters in Madrid dig in and Puerta del Sol becomes a protest camp.
