Spain advances housing initiatives via España Crece fund and fiscal measures

Spain is advancing significant measures to address the housing deficit through both investment funds and fiscal policy. Under the new sovereign fund 'España Crece', Minister of Economy Carlos Cuerpo announced that 34 affordable rental housing projects are currently in the pipeline, representing an estimated mobilization of 700 million euros.

The 'España Crece' fund aims to mobilize up to 23 billion euros in combined public and private funds, with the goal of constructing 15,000 housing units annually. The Instituto de Crédito Oficial (ICO) has established three financing modalities available since September, targeting developers and long-term investors for construction and rental exploitation.

Complementing these investments, a proposed fiscal package valued at approximately 2 billion euros is under consideration. Led by the Ministry of Housing and Urban Agenda, this package includes tax incentives for landlords, tenants, and owners who sell properties to the public sector. It also proposes VAT surcharges on tourist apartments and tax increases for real estate investment trusts (Socimis) holding residential properties.