Spanish government approves 21 housing measures and €10bn fund — Fortune

The Spanish government has approved 21 urgent measures to address the housing crisis, including a new tax on seasonal rentals and the creation of a €10 billion fund to provide loans for first-home purchases. The package still needs to be ratified by the temporary legislative body. The decision was made after mass protests, one of which in Barcelona escalated into clashes with police.

As Fortune reports, the fund will provide loans of up to €50,000 for the purchase of a first home. Prime Minister Pedro Sánchez also announced subsidies for housing construction.

Tax on seasonal rentals

The package provides for support for renting or buying new housing, an extension of protections against eviction for vulnerable residents, regulation of room rentals, and tax breaks for property owners and tenants who make payments on time.

The measures also include a ban on speculative real-estate purchases and the introduction of a new tax on seasonal rentals. Sánchez said the authorities would not allow further evictions similar to that of 87-year-old María del Carmen Abascal, who was evicted from her home in Madrid last month.

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Ratification ahead of elections

Similar government initiatives were rejected by parliament last week after right-wing opposition parties voted against them. Sánchez's coalition did not have a majority, and following the defeat, the prime minister called early elections for November 29.

The measures must be ratified by the 69-member temporary legislative body that has been operating since parliament was dissolved. The coalition needs at least 35 votes to approve the package.

Protests against unaffordable housing took place across the country. In Barcelona, a demonstration postponed because of severe weather warnings was initially held peacefully. Later, groups of activists clashed with police, threw stones and set rubbish containers on fire. Protest participants demanded stronger tenant protections, action against fraud, and a ban on evicting people who have not been provided with alternative housing.