Date Published: 13/01/2025

6 huge housing changes you need to know about if you live in the south of Spain

Tax breaks, anti-squatting measures and other regulations will impact renters and home-owners in Murcia, Valencia and Andalucía

The People’s Party (PP), or Partido Popular, is the leading political party in several communities in Spain including the Region of Murcia, the Valencian Community and Andalucía. Over the weekend, PP president Alberto Núñez Feijóo announced a raft of new housing measures that will impact landlords, homeowners and renters.

These new regulations range from reduced taxes on second-hand home purchases to tougher rules for tackling squatters, and were swiftly followed by the central government’s PSOE party announcing its own property market measures, including stricter restrictions on non-EU residents buying homes in Spain and changes to tax.

Here are the 6 main PP measures you need to know about:

1. Lower taxes

The PP plans to reduce the property transfer tax from its current range of 6-10% to as low as 4%, specifically targeting young people who find it increasingly difficult to get a foot on the housing ladder.

Today, the lowest rates are in Madrid, Ceuta and Melilla, while regions like Aragon, Castilla y León, the Valencian Community and Extremadura have the highest rates.

But Mr Feijóo said that his party plans on lowering taxes “for everyone” in 2025, not just younger people.

“We are going to lower taxes for those who buy a home. We are going to lower them for those who rent a home and we are also going to lower them for those who rent a home," he stressed.

He also criticised Spain's current housing law, calling it "interventionist" and highlighted the severe challenges faced by young people, including high property prices, low wages and Europe's highest youth unemployment rate.

2. Public land for affordable rentals

The housing plan proposes making public land available for developers to build rental housing at fixed prices, potentially up to 30% cheaper than current market rates.

3. Rental guarantee for owners

The PP aims to encourage property owners to join public rental programmes by offering insurance against non-payments and providing legal assistance.

4. Anti-squatter measures

To combat squatting, the bug-bear of so many homeowners, Mr Feijóo has announced that the PP will fight to pass its law to evict squatters within 24 hours, which is blocked in Congress at the moment.

Furthermore, victims of squatting will soon be able to avail themselves of a dedicated help service and a complaints telephone line. A register of all squatter properties will also be established, and collaboration with local police forces will be reinforced.

5. Simplify urban planning processes

The PP plans to reduce urban planning procedures under regional control from nine months to three. They will also work to simplify the framework for accessing protected housing, which Mr Feijóo describes as overly restrictive.

6. Repeal of the housing law

One of the more radical moves is a plan to repeal the PSOE's housing law, which Mr Feijóo claims has led to rising prices. In its place, the party will propose a reformist Land Law aimed at increasing housing supply and providing broader solutions for both renters and buyers.

This alternative will be made public “in the coming weeks.”

According to the regional president, these measures and many others in the pipeline are part of a broader effort to make housing accessible to all. The goal is to support young people, encourage property owners to rent out their homes and provide developers with the tools to expand housing supply.

You might also like: Spain leads EU in short-term rental reform with new registry system

Image: Pixabay

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