Spain’s Parliament approved a resolution introduced by the Popular Party (PP) calling on the government to allow “okupas” to be evicted within 24–48 hours, repeal the 2023 Housing Law because of the “negative consequences” it has caused since coming into force, and reduce VAT on the purchase of a first new-build home from 10% to 4%. Although the initiative is not binding on the executive branch, it represents a warning from Congress and split the government coalition partners: PSOE abstained, while Sumar voted against.
Housing, Mortgage and Tax Proposals
The proposal also calls for reform of the land law to accelerate urbanization and construction processes on land designated for affordable housing. On taxation, it proposes—in line with what several autonomous communities have already done with property transfer tax—allowing such taxes to be paid in installments according to the mortgage repayment schedule.
The initiative also envisages extending the term of mortgage guarantees to 40 years, introducing a system of guarantees for rental deposits for young people, and adopting tax measures to support savings and financial independence for this group. Finally, the approved text calls for simplifying and digitalizing administrative procedures in land-use planning and permit issuance, and for identifying underused public land so it can be prioritized for affordable or social rental housing.
Vote Divides Government Coalition Parties
Although no government minister supported any of the measures, all the demands secured a parliamentary majority thanks to support from Vox and votes in favor or abstentions—depending on the specific point—from Junts and PNV. The proposals nevertheless caused a split between PSOE and Sumar, and the coalition partners voted together against only the demand to repeal the 2023 Housing Law.
For more information about illegal occupation and owner protection, see our article on “okupas” in Spain.
Vox Proposals on Taxes and Social Support
In addition to the PP’s housing proposal, the plenary session also debated and voted on a Vox proposal regarding the “impoverishment of Spaniards” and the measures the party considers necessary to correct it. The proposal did not receive a single vote in favor, however, because PP abstained and the other parties voted against.
Among the proposals promoted by supporters of Santiago Abascal were reducing income tax by introducing tax relief for incomes below €22,000, setting a 15% tax rate for the tax base between €22,000 and €70,000, and a 25% rate for income with a tax base above €70,000. Vox also proposed 100% relief on social security contributions for self-employed workers whose income does not reach the minimum wage, abolishing VAT on basic necessities, and prioritizing Spanish citizens in state support programs.