Spain's Housing Policies: Party Plans for Nov 29

Housing platforms for the November 29 election span from the PP's 5% VAT on first homes to Podemos' mandatory 40% rent reduction. All promise increased supply but diverge sharply on taxes, caps, and evictions.

There is a peculiar consensus in Spanish politics: every party claims housing supply is the core issue. Beyond that, their recipes differ radically. Some cut taxes, others raise them; some liberalize land use, while others impose price controls. These are the unadorned proposals each formation brings to the November 29 vote.

## The PP promises one million homes and 5% VAT

The **PP** commits to building **1 million housing units over four years** by transferring public land. On fiscal matters, it would apply a **5% VAT** to the purchase of a primary residence, limited to new builds up to **120 m²**. For tenants with incomes up to **€33,007**, it would raise deductions to **15%**.

Regarding rentals, the party would eliminate the declaration of "tensioned areas" under the Housing Law and introduce legislation allowing precautionary evictions within **48 hours** for squatting cases. The formation presents these measures as a package ensuring legal certainty for both owners and tenants.

## PSOE bets on state-led development and a 2% cap

The **PSOE** aims to consolidate the State Housing Plan **2026-2030**, endowed with **€7 billion**, and transform the State into a direct developer of affordable public housing. It would maintain the **2%** cap on rent updates and add income tax (IRPF) bonuses of up to **100%** for landlords who lower rents.

In terms of taxation, it would apply a **10% VAT** to stays in tourist apartments and surcharges on the property tax (IBI) of up to **150%** in tensioned areas for such properties. This proposal places the heaviest tax burden on short-term vacation rentals.

## Vox: Zero VAT and 24-hour eviction

**Vox** proposes repealing the Housing Law and replacing it with regulations that free up most available land, except for specially protected zones. On taxes, it advocates for **0% VAT** on the acquisition of a first home and the abolition of Inheritance and Gift Tax and Wealth Tax in the real estate sector.

To protect landlords, Vox defends a **24-hour** eviction procedure and a national priority regime for public housing subsidies. The latter point is highly controversial: it links access to aid with nationality and residency criteria not detailed in the program.

## Sumar, Podemos, and nationalists: Caps, expropriations, and devolution

**Sumar** supports automatic renewal of rental contracts and a cap ensuring rent does not exceed **30%** of household income. It would restrict purchases by investment funds and non-residents unless for primary residence, and regulate tourist and seasonal rentals.

**Podemos** goes further: a mandatory **40%** reduction in rental prices by law, a total ban on non-residential purchases, expropriation of unused homes held by banks and funds, and elimination of the REIT (Socimi) tax regime. It also bans tourist accommodations in urban tensioned areas.

Regionalist and nationalist parties operate on a different axis. The **PNV** and **Junts** reject mandatory automatic renewals for small landlords, favoring tax incentives with IRPF reductions of up to **90%** for those maintaining or lowering prices, alongside respect for regional competencies in land planning. **ERC** and **EH Bildu** seek to decentralize price caps so regions and municipalities can limit costs, increase pogre taxes from the third property onwards, and apply **21% VAT** to vacation rentals.

## What no one specifies: Cost and timeline

None of the programs detail the cost of each measure or where the funding will come from. The PP's one million homes require public land many regions lack; the PSOE's state-developer model clashes with central administration execution capacity. Critics argue Sumar and Podemos' caps disincentivize supply and push prices up.

Housing is a shared competency between the State and autonomous communities, limiting any single-party program. Implementing these measures requires parliamentary majorities and, in several cases, legal reforms taking years. Voters should scrutinize these platforms critically, wary of round figures.