The PSOE has proposed a legal reform in Congress to give “fiscal” or “urban planning” benefits to Listed Investment Companies in the Real Estate Market (socimis) in exchange for them giving up their properties at an “affordable price.” The idea does not have the endorsement of Sumar, the minority partner of the Government, who believes that the exemptions enjoyed by these companies must be ended.
The socialist proposal is reflected in a registered amendment to the bill to establish a global minimum tax of 15% for multinational companies, and with which it includes the Government’s commitment to “push modifications” in the regime of these housing investment funds for the stated purpose.
As explained by the PSOE in the justification of the amendment, to which Europa Press has had access, after the approval of the Housing Law, the concept of incentivized affordable housing was introduced into the Spanish system, which are private properties (including those of the third sector) transferred by the owner at an “affordable price” in exchange for “urban, fiscal, or any other type” benefits.
The socialists see this figure as “necessary” to increase the supply of housing in the short term and believe that the SOCIMIs could be relevant here, which is why they convey the commitment of the Government of which they are a part to analyze possible regulatory modifications in order to contribute topromote the new concept of incentivized affordable housing.
Sumar wants to prohibit seasonal rentals
Faced with the route of tax benefits proposed by the PSOE, its minority partner in the Government, Sumar wants the opposite and eliminates “tax exemptions” that these companies have, such as not paying Corporate Tax or receiving a reduction of up to 95% on the Tax on Onerous Asset Transfers (TPO) when purchasing a property.
Likewise, the plurinational group wants These companies are prohibited from making tourist rentals. or seasonal and that use their homes “exclusively” for regular residential use, and lease contracts must be formalized for a minimum duration of one year.
In an amendment to the same bill, reported by Europa Press, the plurinational group also wants the prices at which SOCIMIs rent their properties to be limited by the State Tax Administration Agency (Aeat), and that None of the homes acquired or managed within the investment framework of a Socimi can be used for rent. tourist or seasonal.
Plurinationals argue that these types of companies have enjoyed tax privileges that have “often” encouraged strategies that increase real estate speculation and, therefore, market prices, limiting access to affordable housing for large sectors of the population.
“The elimination of tax breaks means a move towards a more balanced real estate market, where speculation practices are discouraged in favor of the use of real estate for permanent residential purposes,” argues Sumar in the justification of the amendment.
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