New housing decree blocks extra fees that raise affordable rent under Madrid's Plan Vive

The latest housing decree introduces a clause that prevents extra costs like garage spaces or storage units from inflating the rent of affordable homes, a move that could invalidate many of the apartments offered through Madrid's Plan Vive scheme. Tenants have reported that fees for community services, property tax (IBI) and compulsory parking spots often double the base rent, causing their housing expense to exceed 35% of their income and, in some cases, more than half of their salary.

A legal ruling in 2023 already declared charging IBI on public housing illegal, and renters are now pursuing further complaints. Government officials acknowledge that while the projects might continue, they cannot be marketed as affordable rentals under the new rule. Tenant associations have grown to several hundred members across nine municipalities, highlighting maintenance problems and the financial burden of the added charges.