Spain's rent-cut tax plan stalls after MPs reject it
Spain’s small landlords could gain more by cutting rent than raising it, the economy minister says — but MPs have rejected the tax breaks meant to make that happen. In an interview with TV3 on Wednesday, 28 October, Carlos Cuerpo said the reductions were part of housing decrees voted down by Spain’s Congress of Deputies. He hopes the Permanent Commission will approve them.
Cuerpo admitted the government had not explained the proposals well enough to small landlords. He said they had been left with the mistaken impression that the decrees worked against them. Junts, which voted against the measures, would have to explain its decision, he added.
The minister blamed pressure on housing on a gap between supply and demand. The number of households is growing while their average size is shrinking, he said. Tourist use of homes and seasonal lets add to demand.
To increase supply, Cuerpo pointed to plans to bring more workers into construction through the regularisation of migrants. He also cited a land law that failed to win backing in Congress.
Source: Europa Press / Mallorca.com