Spain approves housing decrees after eviction of 87-year-old woman

The Spanish government has approved two housing decrees following the eviction of 87-year-old Maricarmen Abascal, an event that sparked widespread public outrage and four days of protests in Madrid's Puerta del Sol. The decrees will be voted on in an extraordinary parliamentary session this Friday. Source: infobae, elpaises

Key measures

The package includes a two-year extension of rental contracts expiring before December 31, 2028, a 2% cap on annual rent increases, and protection against eviction for vulnerable households without housing alternatives until December 31, 2030. It also bans purchases by vulture funds until 2028, introduces tax breaks for landlords who lower rents, increases taxation on SOCIMIs (real estate investment companies), and applies a 10% VAT on tourist apartments and 4% VAT on public housing. Source: infobae, elpaises

Political context

The coalition government of PSOE and Sumar reached the agreement after intense last-minute negotiations, delaying the cabinet meeting by an hour. Source: elpaises Housing Minister Isabel Rodríguez called the eviction a "collective failure" and urged parliamentary groups to show "generosity" in supporting the decrees. Source: infobae However, the government faces an uncertain vote: Junts, PP, and Vox rejected a previous housing decree in March. Source: infobae Sumar has called for popular mobilization to ensure approval, and the government split the measures into two decrees—one containing the automatic rental renewal clause, which lacks sufficient support. Source: infobae, elpaises

Disagreements

While the government presents the decrees as a unified response, sources differ on the likelihood of passage. Infobae notes that Junts previously voted against housing measures, while El País emphasizes the government's hope to capitalize on public indignation to rebuild its investiture coalition. Source: infobae, elpaises