In recent years, the Spanish government has implemented various laws and reforms aimed at resolving the housing crisis, including the Housing Law in 2023. However,some experts argue that these measures have created additional challenges.

In january 2025, Prime Minister Pedro Sánchez announced 12 measures designed to increase the availability of affordable housing, improve regulation, and provide greater assistance to those in need.

Some of these proposals have been incorporated into a draft bill presented in the Congress by the ruling Socialists.

One notable proposal is the proposed 100 percent tax on property buyers who don’t reside in the EU, which would effectively double the price of homes for these buyers in Spain.

government Focus Shifts to Socimis

In addition to constructing new social housing and addressing seasonal rentals, the government is now focusing on Socimis (corporate Investment Corporate Corporations) to further improve housing accessibility.

According to Sánchez, the government intends to modify the tax benefits for Socimis, limiting them to companies that manage affordable rentals.

This change will only affect residential Socimis, leaving those investing in offices, shopping centers, or other property types unaffected.

“We must finally put an end to the injustice of some investors using this instrument to pay less tax than ordinary citizens.”

Understanding Socimis

According to DELANTO CHAMBERS, “A Socimi (Corporations contributed by real estate investment) translates as Listed Corporations for Investing in the real Estate Market and is similar to a Real Estate Investment Trust in the UK (abbreviated to REIT).” These are public limited investment companies designed to encourage long-term investment in the Spanish property market through rental properties like homes, hotels, or commercial spaces.

Essentially, Socimis function as publicly traded companies specializing in property investments.

previously, Delanto Chambers described Socimis as “attractive investment vehicles” due to “significant tax breaks,” noting that “provided that the investment and dividend distribution requirements are met Socimis are Corporate Income Tax taxpayers, although subject to a tax rate of 0 percent.”

Government’s Plan for Socimis

The tax benefits currently enjoyed by Socimis could change if the Socialists’ draft bill is approved by parliament.

When announcing the proposal in January,Sánchez stated,”We must finally put an end to the injustice of some investors using this instrument to pay less tax than ordinary citizens when buying the same property.”

In November, the government approved the elimination of the existing Socimi tax regime, which exempted them from taxes if they distributed at least 80 percent of dividends to shareholders.

The government now proposes taxing them at the general corporate tax rate of 25 percent.

However, they have suggested tax breaks for Socimis that contribute to resolving Spain’s housing crisis: a 50 percent reduction if over 60 percent of the asset portfolio is allocated to affordable rentals, and a 100 percent reduction if the profit is reinvested in this type of housing within three years.

Sánchez’s administration will consider properties affordable if their rent does not exceed the index set by the Housing Ministry, if the property is classified as protected, if the rent does not exceed 30 percent of the tenant’s income, or if the annual cost is below €26,400.

These measures are proposed as the Spanish government believes Socimis have not adequately improved the supply of affordable housing in Spain.

Experts suggest that the fiscal clampdown will disproportionately affect foreign investors.

Market estimates indicate that the measure could potentially impact over half of total property investment in Spain.

Foreign investment accounts for approximately 61 percent of the total volume in the Spanish real estate sector since 2014, according to data from Savills.

In 2023, 70 percent of Socimis’ capital was held by international investors, likely due to their shareholder remuneration.