PNV and PSE agree on tax measures on housing, including rent incentives and taxes for large owners

At a time when housing has become one of the main concerns of Basque society and a general strike is being called on in this regard, the PNV and the PSE, government partners in the three Member States, have reached an agreement to implement various tax measures on housing .

Following the agreement on fiscal measures announcedin September, both parties received criticism from the opposition-A0on the absence of housing tax measures. This time, both parties have been working in this area, agreeing on incentives to promote affordable rent, higher taxes for large owners and measures to mobilize empty housing.

Partners may take action at the General Meetings of Bizkaia, which have a majority, but not in Álava and Gipuzkoa, where they will need the support of some opposition group.

Affordable rent: less taxes for the owner

Some of the measures are aimed at making affordable rent more profitable and encouraging owners to market empty housing, thereby strengthening the IRPF bonus thatthe owner   gets in the following cases:

• The 30% general bonus is increased to 35% when the tenant is under 36 years of age or has been rehabilitated in the two years prior to the signing of the contract.
• 70% bonus when the home is ceded to a public rental brokering program, or when the owner voluntarily fixes an income within the reference rates.
• 75% bonus when the house has recently been rehabilitated or, in the case of rents adjusted to reference rates, when the tenant is under 36 years of age.

Empty housing: exceptions when delegated to the public sector

Continuing with the objective of mobilizing uninhabited housing, the agreement provides for a phased exemption in the IRPF for profits from the sale of land or housing itself for the construction of social and affordable housing to the public sector or public-private partnership funds.

In particular, it is envisaged that anyone who sells an empty home for at least the previous two years will not be taxed for the profit obtained, with a quantitative limit and for higher values, with a partial and decreasing exception.

When buying a home: it's more expensive to accumulate, cheaper to buy at a young age

• The ITP tax for large holders is raised to 5% when buying a third or fourth home, 6% when it exceeds the fifth and 7% when it exceeds the tenth.
• For buyers under 36 years of age, a reduced rate is expected to be 25% lower than the general rate. 

Long-term and stable savings aligned with Europe

The package adapts the Long-term Savings Plans to the new European savings and investment instruments and creates a tax system in favour of the European Finance Savings and Investment Account:

• Long-term savings plan returns will be exempted from the IRPF if capital is maintained for at least five years, and a new individual savings insurance linked to the financing of the European economy will be introduced.
• In the Savings and Investment Account for European Financing, the taxation of gains and losses from the sale or return of integrated assets varies until the withdrawal, rewarding sustainability: the profit from contributions held for more than five years is exempt from a tax of up to EUR 10 000 per taxpayer and above that amount by 20%.
• Outstanding contributions will be limited to €150,000 and eligible assets will be increased.

Tourist houses and municipal surplus-value

• IBI: Municipalities are authorized by ordinance to apply a surcharge of up to 150% of the quota to residential homes located in areas of the tense residential market.
• Municipal surplus-value (IIVTNU): the maximum tax rates for increasing the value of urban land are updated.

The Great Owners of the Institutions

Entities renting housing subject to the special corporate tax regime of Article 115 shall enjoy the advantages of adjusting their rents to reference rates or public intermediation prices.

Persons over 65 years of age

The agreement provides for the extension of the exemption currently in force for persons over 65 years of age who transfer their home, in particular, to be supplemented by persons who move to or live with a family member, provided that the dwelling becomes vacant and is transferred to a public mediation programme, extending the reference time limits.