MADRID: The Spanish government will cut the tax subsidy it grants to companies specializing in the rental of real estate to 40% in 2022, cutting the current rate of 85% by more than half, Budget Minister Maria Jesus said on Wednesday Montero.
The corporate tax cut had previously favored real estate rental companies over individual owners – who get a 60% tax cut for the rental of their properties.
Businesses will now need to rent at least eight properties for three years each and ensure that 55% or more of their income comes from residential rentals to qualify for the tax cut.
“We know that Spain has a problem of access to housing, as has been said in every study and report on the subject,” Montero said at a press conference. “This general budget will help all young Spaniards to realize their life projects.”
The left-wing coalition government agreed on a housing bill that targets the lack of accessible real estate earlier this month, defining “big landlords” as any entity with 10 or more properties and aiming for cap rental prices in high demand areas.
The housing law proved a sticking point for months, and the deal reached last week between the ruling Socialist Party, PSOE and young cabinet member Unidas Podemos, was key to pushing through the general government budget for 2022 to Parliament.