Law 12/2023, of May 24, for the right to housing, has been published, which includes a series of tax incentives applicable to the Personal Income Tax to the rental of properties intended for housing.

In particular, an improvement in personal income tax regulation is established to stimulate the rental of primary residences at affordable prices, through the modulation of the current 60 percent reduction in the net return on rental housing, establishing that, in the new lease contracts, the reduction percentage will be 50 %, which may be increased to 90 percent, in the event that new housing lease contracts are signed in stressed residential market areas with a reduction of at least 5 percent on the previous contract. This reduction may reach 70 percent when it involves the incorporation into the market of housing intended for rent in areas with a stressed residential market and is rented to young people between 18 and 35 years old in said areas, or if it is affordable housing. incentivized or protected, leased to the public administration or third sector or social economy entities that have the status of non-profit entities, or covered by a public housing program that limits rental income. And, it may achieve a reduction of 60 percent on the net yield when rehabilitation works have been carried out in the two years.