Spain implements housing tax benefits and local fiscal reforms

The Spanish government has introduced new tax deductions for renters through a royal decree-law, aiming to benefit approximately 1.6 million households. Under these measures, tenants can deduct 10% of their rental payments from their income tax, with potential annual savings of up to 1,163 euros. The benefits are primarily concentrated in Catalonia and Madrid.

Simultaneously, various Spanish municipalities are implementing significant fiscal changes for 2027. In Benavente, the municipal capital gains tax is set for abolition, while Andújar has unanimously voted to freeze major taxes and rates to alleviate the cost of living. Other local updates include a 5% discount on vehicle circulation tax in Molina de Segura and an increase in the Property Tax (IBI) in Ullastrell to fund public housing expansion.

In Madrid, new urban planning measures will allow for the creation of over 18,400 protected rental homes by utilizing private and office land. Additionally, Córdoba is advancing the 'Plan Vives', an ambitious project to construct over 800 affordable rental units, specifically targeting young people and the elderly.