Government approves new housing crisis decree

Ministers have passed measures including rental contract extensions, tax deductions, and 0% interest loans to tackle housing access issues.

The central Government will approve a decree to address the housing access crisis during the Council of Ministers meeting on Tuesday, 29 September 2026. The measures include an annual extension for rental contracts expiring before 2029 for up to two years.

The decree introduces tax deductions for tenants and landlords, alongside bonuses for housing savings accounts. The ICO will offer ten-year 0% interest loans via the 'Tu casa' line, while seasonal rentals and tourist housing VAT are now strictly regulated.

Small owners will receive financial compensation if evictions of vulnerable people are suspended. While the Ministry proposes a 2% rent increase cap, the draft notably excludes a ban on vulture fund acquisitions and the recovery of mortgage tax deductions.


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