Spain introduces tax deduction of up to 10% for low- and middle-income tenants

Spain has enacted a new housing decree that introduces a state tax deduction of up to 10% for tenants with low and middle incomes, aimed at easing the financial burden of renting. The deduction will be automatically integrated into the annual income tax return, reducing the amount owed to the tax authority or increasing refunds for those entitled to them. Additionally, the decree includes fiscal incentives for landlords, offering up to 100% reduction in certain tax obligations if they do not raise rents. These measures are designed to help households cope with the rising cost of living and to encourage a more stable and affordable rental market.