The Executive estimates the impact on public finances of the decree with tax incentives, protection against evictions, and prohibition of purchase by vulture funds at just over 1.6 billion. The text will be voted on this Friday in Congress.
The Government has estimated the cost to public finances of the two housing royal decrees that will be voted on this Friday in the Congress of Deputies at just over 1.6 billion euros, according to the economic reports of the texts, collected by valenciaplaza.com.
The expenditure is concentrated in the decree that includes tax incentives, protection against evictions, and the prohibition of purchase by vulture funds. The other decree, which regulates the automatic renewal of leases, does not generate public expenditure because it does not alter taxes or create specific bodies or allocations.
In the fiscal section, the main impact comes from the extension of the 1.1% IRPF rate for vacant homes, which affects around 2.36 million tax returns and represents a revenue loss of 154 million euros.
The text also includes surcharges on the IBI for vacant homes, although the Treasury does not quantify its cost because it is a tax managed by local entities and its application depends on whether the property is in an officially declared stressed area.
For owners who rent at a reduced price, the decree sets reductions in the IRPF of up to 100% if the price is lowered by 5% when signing a new contract. The Executive does not specify the exact cost and argues that the net impact will depend on the effective distribution of contracts and will be rolled out gradually.
The deduction of 60% in the IRPF for energy rehabilitation or for contracts signed before the entry into force of the 2023 Housing Law is estimated at 370 million euros.
In the IRPF, the Government estimates that around 945,000 people will benefit from a 10% deduction for renting their primary residence, for taxpayers with a taxable base of less than 33,007.20 euros. The estimated cost is 835 million euros.
The exemption from IRPF for aid for rehabilitation under the State Housing Plan 2026-2030 will reach 11,915 taxpayers and will cost 6.8 million. The exemption from capital gains tax for the transfer of vacant homes to public entities is estimated at 93.9 million, although the Tax Agency admits that the figure may vary depending on the number of transfers and their value.
Measures related to income from kinship and income attribution are estimated at around 380 million euros.
In terms of VAT, taxing tourist apartments at 10% will contribute around 170 million euros per year and 14 million just in December, when it would come into effect if the text is validated. The reduced rate for renovation and repair works in homes intended for rental will cost 103.5 million in full-year terms, and lowering the VAT to 4% for protected housing will represent 121.2 million.
The law also raises the tax on the profits of Socimi from 15% to 25%, which will generate an increase in revenue of 1.2 million, although the tax deductions that these companies can benefit from amount to 3 million.
Finally, the report notes that the contributions of properties from the State Heritage and other public sector entities to CASA 47 primarily have a patrimonial effect, although they may produce unspecified budgetary consequences.
The vote on both decrees in Congress is scheduled for this Friday. If approved, the decree with tax measures would come into effect in December, as stated in the text.
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