Spain to more than halve subsidy for firms specialised in letting property

Closed-down businesses amid the coronavirus disease (COVID-19) pandemic, in Madrid
A "For rent" sign hangs at the chained entrance of a closed-down business, amid the coronavirus disease (COVID-19) pandemic, in Madrid, Spain, March 12, 2021. REUTERS/Susana Vera

MADRID, Oct 13 (Reuters) - Spain's government will slash the fiscal subsidy it provides to companies specialised in renting out properties to 40% in 2022, more than halving the current rate of 85%, Budget Minister Maria Jesus Montero said on Wednesday.

The discount on the company tax had previously favoured property rental firms over individual landlords - who receive 60% tax rebates for renting out their properties.

The firms will now have to rent out at least eight properties for three years each and ensure that 55% or more of their income comes from residential lettings to qualify for the tax rebate.

"We know that Spain has a problem regarding access to housing, as has been said in every study and report on the subject," Montero told a news conference. "This general budget will help all young Spaniards realise their life projects."

The leftist coalition government agreed on a draft housing law which targets the lack of accessible real estate earlier this month, defining "big landlords" as any entity owning 10 or more properties and moving to cap rental prices in high-demand zones. read more

The housing law had proved a sticking point for months, and the deal struck last week between ruling socialist party PSOE and junior cabinet member Unidas Podemos was pivotal in getting the government's general budget for 2022 through to parliament.

Reporting by Clara-Laeila Laudette; additional reporting by Belen Carreno; editing by Andrei Khalip, William Maclean

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