It is not an issue that has been commented on excessively, but the fiscal effects that the recently approved Housing Law may have are noteworthy.

The rule, which will enter into force on January 1 of next year, establishes changes that will be reflected in the income statements of landlords as of 2024.

Until now, Law 35/2006 had been contemplating a 60% reduction for those yields on the rental of properties intended for permanent housing.

However, by virtue of the new Law 12/2023, approved last May, the reduction percentages of certain positive net income from movable capital have been modified, reducing the general reduction from 60% to 50% in new contracts. for rent.

Based on the new general reduction of 50%, this may be increased in the following cases and up to the following percentages:

90% reduction:

If the tenant who already resided in the home signs a new contract in a stressed residential market area, and the landlord reduces the rental price by more than 5% compared to the previous contract (adjusted for inflation).

70% reduction:

• If the tenant is between 18 and 35 years old, he is renting the home for the first time and it is located in a stressed residential market area.
• If the Public Administration or a non-profit entity rents the home for social purposes and the rent is lower than that established in the rental aid program of the state housing plan.

60% reduction:

In the event that the home has been rehabilitated in the two years prior to the signing of the lease.

The new percentages will be applicable exclusively to contracts signed from the date of entry into force of the new Law. Consequently, previously signed contracts, including (it appears to be) any extension that has been agreed, will continue to be governed by the percentages reduction previously established.

It is important to take into account that these requirements (age of the person who pays the rent, social rent...) must be met at the time of signing the contract, applying the reduction, as long as they continue to be met on the date of accrual of the tax ( December 31).

One issue to highlight is the impossibility of applying the reductions mentioned in the previous sections when the rental contracts do not comply with the rent freeze established by the new article 17.6 of the Urban Leases Law. What does this imply? Well, since the agreed rent at the beginning of a new contract cannot be higher than the last rent of the previous rental contract of the habitual residence that was in force in the last five years, once the annual update clause has been applied ( according to IPC), the one who rents for a higher price than the one allowed in the regulations, will lose the right to the aforementioned reductions. But, what would happen in the case in which, having agreed a rent higher than the allowed one, the contract was voluntarily rectified to adapt to the regulations? Would the reduction be feasible, since the contract had been adjusted suddenly? Would it be possible to request a rectification of the self-assessment? The answer will depend on whether or not the purpose of the standard is considered to require initial compliance, with benefits being denied in cases where the requirements have not been met from the beginning. The development of complementary regulations will be important to determine how both the Administration and taxpayers should act.
 

The new IBI surcharge for empty homes:

The Housing Law of 2023 also includes changes regarding empty houses and the consideration of large holders.

The new regulations will allow town halls to apply a surcharge on the Real Estate Tax (IBI) of up to 150% of their liquid quota for empty homes.

A home will be considered empty when it remains unoccupied continuously for a period of more than two years and provided that the landlord owns four or more properties.

• In the case of properties for residential use that are permanently unoccupied, the municipalities may require a surcharge of up to 50% of the net amount of the tax.
• The surcharge may be up to 100% of the net amount of the tax, when the period of vacancy is greater than three years.
• The surcharge may be up to 150%, in those cases in which the owners, having more than four homes throughout Spain, keep at least two of them uninhabited in the same municipality.

Exceptions to the rule:

Owners who are in any of the following situations may keep their home empty and not be exposed to penalties:

• Homes that are the subject of litigation or cases pending by judicial resolution.
• Change of address for health or dependency reasons.
• For temporary transfer, either as a result of work or training reasons.
• Properties that need works or rehabilitations for their adequacy and habitability.