Spain's Council of Ministers approved two housing decrees introducing Financia Europa investment accounts with a 150,000 euro limit and tighter rules for owners of over ten properties.
Spokespersons Miguel Ángel García in Madrid and Carolina España in Andalusia confirmed legal reviews to challenge the decrees before the Constitutional Court over regional competencies.
Isabel Díaz Ayuso presented the Valdecarros urban development in Madrid, which plans 51,656 homes with 28,000 units allocated for public protection.
Spain's Council of Ministers approved two decree-laws on housing on 6 October 2026, which were officially published in the Boletín Oficial del Estado on 7 October. The legislation revives the Financia Europa Savings and Investment Account, offering a retail investment vehicle with a 150,000 euro contribution limit per person alongside the Financia Europa Long-Term Individual Savings Insurance. Assets held within the account must concentrate at least 70% in European Economic Area holdings, with 50% in equities, shielding capital gains from personal income tax while invested. For assets held over five years, accumulated profits up to 10,000 euros remain tax-free upon withdrawal, with a 20% exemption applied above that threshold. The decree also extends restrictions on speculative acquisitions by redefining large property holders as entities owning more than ten properties.
Regional governments led by the People's Party prepared legal challenges against the central decree-laws, sending the texts to constitutional lawyers for review. Madrid's regional government confirmed that its legal department is examining the measures over potential jurisdictional overreach and property rights infringements. Madrid regional spokesperson Miguel Ángel García described the texts as an electoral leaflet, asserting that the rental sector has lost 400,000 units since the central government assumed office. In Andalusia, regional spokesperson Carolina España noted that the regional executive is evaluating whether to appeal the decrees before the Constitutional Court, citing potential conflicts over regional competencies. Meanwhile, Andalusian Socialist spokesperson María Márquez criticized the regional government's separate Constitutional Court appeal against the state housing law, which seeks to shorten the lock-in period for protected public housing from 30 years to seven years.
“These decrees are a fraud, an electoral leaflet and will deliver the final blow to the housing market, to a rental market that already has 400,000 fewer apartments since the current government took the reins of the country.”
Madrid Regional President Isabel Díaz Ayuso presented the Valdecarros residential project in southeast Madrid, which encompasses 51,656 planned homes, including 28,000 units designated for public protection. Ayuso reiterated her administration's commitment to market deregulation, tax reductions, and accelerated planning approvals to expand residential supply rather than regulating rents. The Madrid government also called for the immediate clearing of an unauthorized tent camp situated outside the Real Casa de Correos in Puerta del Sol, which regional officials stated had caused commercial losses exceeding 60% for local shops.
“Nothing intervened from ideology ends up working, only from freedom and trust can supply be multiplied.”
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Speaking at the V National Housing Congress organized by the Association of Developers and Builders of Spain, Fundació Hàbitat3 President Carme Trilla evaluated the revised decrees as a step toward consensus while calling for housing budgets to reach 1% of gross domestic product. Trilla backed new public risk-mitigation instruments designed to protect landlords against unpaid rent and property occupation when accommodating vulnerable tenants. Conversely, former Podemos Organisation Secretary Pablo Echenique criticized the removal of the phrase "fondo buitre" from the text's explanatory preamble, linking the revision to a 50 million euro contract awarded to Blackstone's housing division to manage assets held by Sareb. Multiple-property owners also criticized the government's approach, warning that regulatory burdens would lead landlords to withdraw properties from the long-term rental market.
“The decrees could be better and be braver, but I think they show us steps toward reaching these types of agreements.”
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Spain's Council of Ministers approved two housing decrees introducing new retail investment accounts and tightening rules on large landlords, prompting Madrid and Andalusia to prepare appeals before the Constitutional Court.
AI text based on reports by ABC TU DIARIO EN ESPAÑOL, europa press, El Periódico and other publishers. Changed .