Law 12/2023, of May 24, on the right to housing, has been published, which includes a series of tax incentives applicable in the Personal Income Tax to the leasing of properties intended for housing.

In particular, an improvement in the regulation of personal income tax is established to stimulate the rental of habitual housing at affordable prices, through the modulation of the current 60 percent reduction in the net income from housing rental, establishing that, in new lease contracts, the percentage of reduction will be 50 percent. %, which may be increased to 90 percent if new housing lease contracts are signed in areas with a stressed residential market with a reduction of at least 5 percent on the previous contract. This reduction may reach 70 percent when it concerns the incorporation into the market of housing intended for rent in areas with a stressed residential market and is rented to young people between 18 and 35 years of age in said areas, or, alternatively, it concerns affordable housing that is incentivized or protected, rented to the public administration or third sector entities or the social economy that have the status of non-profit entities, or covered by a public housing program that limits rental income. And, it may achieve a 60 percent reduction on net income when rehabilitation works have been carried out in the two years.