The law for the right of housing: LA LEY POR EL DERECHO A LA VIVIENDA

Ley 12/2023 de 24 de mayo de 2023 por el derecho a la vivienda, has come into force and was published in the Spanish Official State Gazette (BOE) on May 25, 2023.”

The Law 12/2023 of May 24, 2023, safeguarding the right to housing, has come into force and was officially published in the Official State Gazette (BOE) on May 25, 2023. This informative circular aims to elucidate what we consider the most pertinent aspects and/or concepts:

1. Definition of a Great Holder The Law 12/23 categorizes a “Gran Tenedor” as an individual or legal entity holding more than ten urban residential properties or a built-up area exceeding 1,500 m² for residential use (excluding garages and storage spaces). Notably, the definition may be customized in areas of stressed residential markets for those holding five or more urban residential properties within said area.

2. Declaration of Stressed Residential Market Areas A significant innovation in the Housing Law is the authority granted to competent administrations (territorial administrations) to declare areas as “Zonas de Mercado Residencial Tensionado” following a preparatory procedure. Such declaration may be justified by an elevated risk of insufficient housing supply due to:

  • Overburden on housing payments (over 30% of average income) in the area’s households.
  • Cumulative increase of at least three percentage points over the IPC increment over the preceding five years before the declaration as a stressed area.

The stressed residential market declaration is valid for three years, justifiably extendable annually.

3. Measures for Stressed Residential Market Areas The law outlines specific measures consequent to the declaration of a stressed residential market area, including: i. Extraordinary annual extension possibilities for lease contracts in said area. ii. Limitation on rent for new lease contracts in stressed areas, differentiating between non-Great Tenedor landlords and Great Tenedor landlords.

4. Amendments to the Law of Urban Leases (LAU) The Law 12/2023 introduces modifications to the existing Urban Leases Law of 1994, notably: a. Assigns the responsibility for real estate management and contract formalization expenses to landlords (Article 20 of LAU). b. Adds an additional extraordinary one-year extension at the tenant’s request for habitual residence leases, mandatory for Great Tenedor landlords.

5. Rent Increase Regulation Regulation of maximum annual rent increase is set at 3% for the year 2024. The law mandates that, by December 31, 2024, the National Institute of Statistics will define a new reference index for lease contract updates.

6. Information Requirements in Real Estate Operations The Law 12/2023 stipulates minimum information standards in buying and leasing operations, emphasizing completeness, objectivity, truthfulness, clarity, and comprehensibility.

7. Fiscal Incentives Modifications Changes in the percentages of fiscal incentives applicable to Personal Income Tax (IRPF) for property leases include enhanced reductions for new contracts in stressed residential market areas, subject to specific conditions.

8. Property Tax Modifications Modulation of the current 50% surcharge on the Net Property Tax (IBI) is introduced, potentially reaching 150%, based on the duration of vacancy and the number of unoccupied properties owned by the same holder in the municipal area.

9. Working Group Establishment A working group is anticipated to be formed within six months of the Law 12/2023’s enactment, focusing on proposing regulatory norms for non-residential lease contracts, particularly those related to seasonal leases on urban properties designated for residential use.


Given the fluidity of Spain’s legal landscape, this interpretation is not exhaustive legal advice but a guide. It does not replace the expertise of a lawyer, always recommended for precise legal insights.In the realm of a property ownership, understanding and navigating these tax intricacies is not just a fiscal duty but a key to preserving the paradise you call home.

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