Spanish Government extends its Housing Plan

The Spanish Ministry of Transport and Movement has officially announced  reform of its current housing plan – Housing Plan 2018-2021. Its aims are to streamline the management of this plan, in addition to achieving a greater efficiency of the resources allocated to this scheme.

Among the main clauses to be introduced is the extension of one year, until December 2022, of the deadline for granting the various rental and purchasing aids provided in the plan to make the most of the funds transferred by the Ministry of Transport and Movement to Spain’s Autonomous Communities.

Aid included in the Housing Plan

The aid provided for young people buying homes in municipalities with less than 5,000 inhabitants is extended. With this move, it will benefit young people who buy apartments in urban areas that also have less than 5,000 inhabitants.

The wording of the current plan indicates that the aid is intended for young people from “municipalities”. This meant that, according to the Ministry, population centres with a territorial scope smaller than that of the municipality, such as villages or hamlets, were unintentionally excluded.

Therefore, the words will be modified through a Royal Decree so as to resolve this “unwanted” discrimination. It will also extend the application of the aid to population centres of less than 5,000 inhabitants that are in rural areas.

Streamlining procedures

By virtue of the reform, and also in order to speed up the processing of aid grants, the requirement to sign agreements between administrations so that they or their dependent public companies purchase housing with aid from the Ministry in order to increase the public housing stock has been abolished.

In addition, the period of execution of the urban regeneration and renewal actions articulated under the previous plan will be extended, that of the period 2013-2016 and its extension, in two years, until December 31, 2022.

Urban regeneration plans

Specifically, this initiative is aimed at extending the deadline for the execution of urban regeneration and renewal areas – 193 are specified in the document. These are actions that are already underway and for which the affected Autonomous Communities have been requesting such an extension.

This way, the Spanish Government plans to maintain urban activity and employment. And even generate new jobs, in addition to improving the quality of life of citizens living in areas and housing subject to regeneration or renovation.

Finally, with the modification of the housing plan, the deadline for the Autonomous Communities to acquire financial commitments is extended, with the funds committed by the Ministry in the financial years 2020 and 2021 – Until 31 December 2020 and until 31 December 2021, respectively.

Should you require any assistance or legal counsel concerning properties, purchases and sales on the islands of Mallorca, Menorca and Ibiza, please contact us at your convenience at or by phone on the numbers listed on our contact page.



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