Spain’s 10% holiday-flat VAT plan falls in housing vote

A planned 10% VAT charge on holiday flats falls away: Spain’s Congress of Deputies votes down the government’s housing decree in Madrid, Spain, on Friday, 2 October. The vote also ends plans to extend rental contracts expiring this year and to block evictions of vulnerable people.

A decree that lasted little more than a day

The decree took effect at midnight on Thursday. On Friday, 178 deputies voted against keeping it, while 172 voted in favour. The opposition came from the Partido Popular, Vox, Junts and Unión del Pueblo Navarro.

Housing minister Isabel Rodríguez had urged opposition parties, particularly Junts, to abstain. Deputies cast their votes aloud from their seats in a public roll-call vote.

Tax and loan plans fall away too

The rejected decree would also have added property-tax surcharges on empty homes owned by people with at least four residential properties. It proposed a 10% tax deduction for tenants renting their main home in areas with strained housing markets, subject to an income limit.

Another measure offered interest-free, fee-free loans of up to €50,000 to help people buy their first home. Those plans fall with the decree, along with the proposed VAT charge on holiday flats.

Topics: Housing · Tourism · Politics · Economy

Source: Europa Press / Mallorca.com