Congress to vote on sweeping housing reforms covering rentals, evictions and subsidies

On Friday, an extraordinary plenary will examine two housing decrees that the cabinet approved earlier this week. The first decree restricts entities from buying homes below 70% of market value until the end of 2028, with exemptions for affordable housing, social use and vulnerable groups, while also prohibiting evictions of vulnerable tenants until 2030 and limiting short-term rentals to justified periods. It also bans passing real-estate management costs to tenants and introduces tax reductions for small-scale landlords.

The second decree introduces automatic lease renewal after five years, requires owners who terminate contracts to pay up to twelve months' rent as compensation, and creates a zero-interest loan programme to finance first-home purchases, with repayment terms of up to ten years. Additional provisions set a 2% cap on rent increases, a 10% income-tax deduction for low-earning renters, and new taxes on vacant homes and second residences.