Recently, the government of the country approved a subsidy for rental housing for young people in the amount of EUR 250 per month. The allowance will be received by young people aged 18 to 35 years, whose income is less than EUR 24,300. EUR 200,000,000 will be spent on the implementation of this project this year, as a result, about 70,000 Spaniards will receive assistance. At the same time, this campaign gave the green light to another type of assistance: subsidies for the construction of housing for rent.
The government wants to increase the supply of rental housing for foreign workers with limited incomes who come to Spain for only a few months. To solve this problem, the method of subsidizing the construction of social housing has been chosen.
It is assumed that these will be buildings of a special type with less personal space and more common areas. For instance, common rooms will be designed for residents of an entire apartment building. The government called this format cohabitation.
«For Spain, this decision will be innovative. The aim of the campaign is to build decent housing for people who come from other parts of the world to work here», the Ministry of Transport, Mobility and Urban Agenda reports.
The idea is that people coming to Spain to work should be provided with high-quality accommodation, since now this category lives in housing that does not meet the standards at all. «They live in unacceptable conditions, which is why we are taking this decision and calling for autonomy», the same sources report. Although this initiative is governmental, it will be implemented in cooperation with autonomous communities and local councils.
Currently, 2.2 million foreigners work in Spain, 791,000 of them from EU countries (35%) and 1,500,000 from third countries (the remaining 65%). According to the Government, of these workers, 233,000 are registered in the social security system through a special agricultural system and 166,000 are registered in the household system, but there is no data on how many of them live in substandard housing.
A detailed description of the support can be found in Boletín Oficial del Estado (BOE). In short, the assistance consists in providing developers with a subsidy of up to EUR 420 per square meter, or EUR 50,000 for the entire facility. The support will extend to real estate that will be built after receiving a subsidy and which will subsequently be rented out at a limited price. The amount of assistance cannot exceed 50% of the investment in the project.
To receive a subsidy, developers must rent out objects at a price of no more than EUR 8 per square meter. In addition, people with an income of less than five times the IPREM size should live in these houses (EUR 40,531.4 per year and about EUR 2,900 per month) at the time of signing the lease agreement. As in the case of restrictions on the amount of rent and income set for receiving subsidies, autonomous communities will be able to expand this maximum if they deem it necessary.