Spain plans €50,000 interest-free first-home loans
Up to €50,000 towards a first home: Spain’s housing decree proposes an interest-free state loan for buyers who also take out a mortgage. The proposals, reported from Madrid on 30 September, would also change tax breaks for landlords and tenants and allow higher property taxes on some holiday lets.
How the first-home loan would work
The state loan would cover up to 20% of the home’s value or €50,000, whichever is lower. It would carry no interest or fees and have a maximum term of ten years. A home bought with the loan would remain subject to a cap on its resale price.
Tax breaks for lower rents
Landlords who are not classed as large property owners could get a tax reduction of up to 100% of their positive net rental income when they sign a new contract at a lower rent. To qualify for the full reduction under the stated conditions, the new rent must fall by more than 5% from the previous rent, after any applicable adjustment.
The decree also proposes a state tax deduction worth 10% of rent paid on a main home for tenants with an annual taxable base below €33,007.20. Some existing tenants could request an extension of up to two years, subject to conditions including a record of rent payments.
Holiday lets and short-term contracts
Short-term rental contracts would need a genuine, documented reason for their time limit. They must last more than 31 days and generally no longer than 12 months. More than two consecutive contracts for the same home between the same parties could mean the first is treated as a main-home tenancy.
For holiday lets, councils in areas classed as pressured housing markets could add a surcharge to local property tax. It could reach 50%, rising to 100% for an owner with at least two homes used for tourism and 150% for one with at least four. On Mallorca, that power would depend on whether the municipality is in such an area and whether its council chooses to use it.
Topics: Housing · Tourism · Politics · Economy
Source: Europa Press / Mallorca.com