The Spanish government has expanded a tax benefit for landlords who lower rental prices to apply to all autonomous communities across the country. Previously, this incentive, a reduction in Personal Income Tax (IRPF), was limited to “tensioned areas” – currently functioning only in parts of Catalonia, Basque Country, Navarre, Galicia, and Asturias. The government has now increased the tax deduction to 100%, exceeding initial expectations outlined in the housing law. This move aims to encourage landlords to offer more affordable rental options nationwide, not just in designated high-pressure zones. The extension and increase are intended to broaden the impact of the housing policy and address rental affordability challenges across Spain. This change bypasses the limitations of the current system where "tensioned area" designation was narrowly applied. The measure seeks to stimulate a wider response from landlords.

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