Law 12/2023 of 24 May on the right to housing has been published, which includes a series of tax incentives applicable to personal income tax on leases of property used for housing.

In particular, it establishes an improvement in the regulation of personal income tax to stimulate the rental of permanent housing at affordable prices, through the modulation of the current 60 percent reduction in the net yield of rental housing, establishing that, in new rental contracts, the percentage of reduction will be 50 percent, which may be increased to 90 percent, in the event that new housing rental contracts are signed in areas with a stressed residential market with a reduction of at least 5 percent on the previous contract.This reduction may reach 70 percent in the case of the incorporation into the rental market of housing intended for rent in areas with a stressed residential market and rented to young people between 18 and 35 years of age in these areas, or in the case of affordable housing that is incentivised or protected, leased to the public administration or third sector or social economy entities that have the status of non-profit entities, or is included in a public housing programme that limits the rental income.A reduction of 60 per cent of the net yield may be obtained if renovation work has been carried out within the two years.