The Spanish Parliament approved a resolution presented by the People’s Party (PP), calling on the government to allow the eviction of “okupas” within 24–48 hours, repeal the 2023 Housing Law due to the “negative consequences” it has caused since coming into force, and reduce VAT on the purchase of a first new home from 10% to 4%. Although the initiative is not binding on the executive branch, it represents a kind of warning from Congress and divided the governing coalition partners: while PSOE abstained, Sumar voted against.
Proposals on housing, mortgages and taxes
The proposal also calls for reform of the Land Law to speed up urban development and the development of plots intended for affordable housing. In the tax sphere, it proposes – in line with what several autonomous communities have already done regarding property transfer tax – allowing these taxes to be paid in instalments according to the mortgage repayment schedule.
The initiative also provides for extending the term of mortgage guarantees to 40 years, introducing a guarantee system for rental security deposits for young people and adopting tax measures to encourage savings and financial independence among this group. Finally, the approved text calls for simplifying and digitalising administrative procedures relating to urban planning and permits, as well as identifying underused public land for priority use for affordable or social rental housing.
Vote divides the governing coalition parties
Although none of the measures was supported by any member of the government, all the demands received a majority in Parliament thanks to the support of Vox and votes in favour or abstentions, depending on the point, from Junts and PNV. Nevertheless, the proposals caused a split between PSOE and Sumar, with the coalition partners voting unanimously against only the demand to repeal the 2023 Housing Law.
More information about illegal property occupation and ways of protecting a home can be found in our article on measures proposed to combat “okupas” in Spain.
Vox proposals on taxes and social support
In addition to the PP’s housing proposal, the plenary session also debated and voted on a Vox proposal concerning the “impoverishment of Spaniards” and the measures the party considers necessary to address the situation. However, the proposals did not receive a single vote in favour, as the PP abstained and the other parties voted against.
Among the proposals advocated by supporters of Santiago Abascal are a reduction in income tax through a tax allowance for incomes below €22,000, a 15% tax rate for the taxable income bracket between €22,000 and €70,000, and a 25% rate for the final income bracket with a taxable base above €70,000. Vox also proposed a 100% reduction in social security contributions for self-employed workers whose income does not reach the minimum wage, the abolition of VAT on essential products and giving Spanish citizens priority in public assistance programmes.
