Spanish Government to approve July housing decree extending rentals and raising VAT on tourist apartments

The Spanish coalition government says it will present a comprehensive housing decree in July. The draft includes an extraordinary extension of rental contracts, mandatory written agreements, tighter regulation of seasonal and room rentals, and tax incentives for landlords who lower rents. It also proposes increasing the value‑added tax on tourist‑type apartments to 21% and measures to speed up administrative procedures for new affordable‑housing construction.

Spokesperson Elma Saiz described the package as “important, ambitious and transversal,” aiming to curb rent pressure and expand affordable supply. Negotiations involve Sumar, PSOE and the regional party Junts, while opposition parties PP, Vox and Junts previously blocked a two‑year rent‑extension vote in March. The government hopes the decree will secure broad parliamentary support before being submitted to the congress.