Law 12/2023 of 24 May on the right to housing introduced measures that directly affect property owners who offer their homes for rent.
On the one hand, property owners can benefit from reductions in personal income tax (IRPF) thanks to an amendment to the Second Final Provision of Law 12/2023. These changes are aimed at promoting rentals in areas with a stressed housing market, facilitating access for young people and people in vulnerable situations, and encouraging the transfer of homes for social rental.
On the other hand, given the housing emergency that Barcelona is experiencing, it is important not to leave empty dwellings. For this reason, the Third Final Provision of Law 12/2023 will be amended to allow the application of surcharges on the Property Tax (IBI) to those owners who leave their homes unoccupied.
Highlights
FAQs
1. What are the benefits of renting in stressed housing market areas?
Reductions are applied to the positive net return on the rental of a dwelling:
- The reduction is 90% if the landlord has entered into a contract in an area designated as a stressed housing market (ZMRT) by reducing the updated rent of the previous lease by more than 5%.
- The reduction is 70% if the landlord is renting for the first time in a ZMRT and the tenant is between 18 and 35 years old.
2. Is the positive net yield reduced if the property is rented to a public administration or non-profit organisation?
Yes, a reduction of 70% is applied if the owner rents the property to a public administration or a non-profit organisation for use as social housing or housing for a vulnerable person.
This percentage is also applied if the dwelling is subject to a public dwelling programme or a qualification that exceeds an income limit.
3. What is the reduction if the dwelling has been renovated?
If the renovation work has been completed within the two years prior to the formalisation of the contract, the owner will benefit from a reduction of 60% of the positive net yield.
4. Are there any other benefits?
The reduction in the positive net return from renting a home is otherwise 50%.
5. Are IBI surcharges applied when the house is empty?
Yes, there are the following types of surcharges:
- 50% of the IBI rate if the dwelling is empty.
- Up to 100% of the IBI rate if the owner has 2 or more empty dwellings.
- 100% of the IBI rate if the empty period is more than 3 years.
- Up to 150% of the IBI rate if the owner has 2 or more empty dwellings for more than 3 years.
6. Are there any exceptions where these surcharges do not apply to the IBI?
For the purposes of the IBI surcharge, it is considered that there is a valid reason for keeping a dwelling empty and avoiding the surcharge:
- Due to temporary relocation for work or training.
- Change of address for reasons of dependency, health or social emergency.
- If the dwelling is a second home and has been empty for a maximum of 4 years.
- If the dwelling is subject to renovation or other circumstances that prevent effective occupation.
- That the dwelling is the subject of litigation or is the subject of an administrative order preventing its use.
- That the dwelling is a house and its owners have put it on the rental or sale market at a reasonable market price, but there has been no demand to rent it for 6 months or to buy it for 1 year.
- That the dwelling is a house and its owners are either a public administration or have put it on the rental or sales market. In this case there is no time limit. The simple fact of marketing will be a legitimate reason for the dwelling to be empty.