Spain plans eviction shield and VAT on holiday lets

The eviction of 87-year-old Maricarmen in Madrid, Spain, fuels protests: the government wants ministers to approve new housing protections on Tuesday. Maricarmen has a disability and had lived in the city’s Retiro district for seven decades. Protests over her eviction began last Wednesday.

The Ministry of Housing and Urban Agenda says the proposed decree would protect people facing eviction and make rental contracts more stable. It is still negotiating the details with parliamentary groups.

Holiday lets and rents in the plan

The government wants to tackle steep rent increases and problems when tenants renew contracts. It also proposes barring investment funds from buying homes for speculation.

Holiday lets are in the plan too. The government wants to regulate short-term rentals to combat fraudulent contracts and charge VAT on tourist flats, treating them as a business activity and seeking to curb their spread. Other proposals include tax breaks for tenants and landlords who cut rents, and help for people buying their first home who lack sufficient savings.

Tuesday’s decision remains uncertain

The ten-part package has not been agreed. Prime Minister Pedro Sánchez asked his political partners on Sunday to make a final effort so the government can bring the decree to ministers on Tuesday.

On Wednesday, opposition parties and several of the government’s parliamentary partners plan to question Housing Minister Isabel Rodríguez in parliament about her handling of housing policy.

Topics: Housing · Tourism · Politics · Economy

Source: Europa Press / Mallorca.com