The Royal Decree-Law 26/2026, of September 29, adopting urgent measures for the protection of the social function of housing and the expansion of the supply of affordable housing, was published in the Official State Gazette (BOE) on September 30.

Title II of said Royal Decree-Law introduces important modifications to the Personal Income Tax. Thus, the reductions in positive net returns on real estate capital are modified, which can reach 100% in certain cases. A 10% deduction for rent of the main residence is also introduced for taxpayers whose taxable base is less than 33,007.20 euros per year. Likewise, an exemption is introduced for the capital gain obtained from the transfer for consideration of a home to territorial public entities and those other public bodies and companies or commercial companies belonging to the public sector, whose purpose is the promotion and management of social and affordable housing.

For more details on these and other tax and fiscal measures related to housing, please consult this Royal Decree-Law.