Sunday 1/23/22
HOUSING

Spanish Government delays implementation of youth rental subsidy

The 250-euro rental subsidy for young people under 35 years of age should have come into effect on 1 January
FILED - 26 December 2021, Spain, Malaga: A couple takes a selfie while kissing at the street in Malaga on a Christmas Sunday. Photo: Álex Zea/EUROPA PRESS/dpa.
A couple takes a selfie while kissing at the street in Malaga on a Christmas Sunday. Photo: Álex Zea/dpa.

The new year has already begun, and with it, the entry into force of the state budget approved by the Spanish Parliament for 2022. But for now, without the 250-euro subsidy for youth rental promised by the Prime Minister Pedro Sanchez.

In October, Sanchez surprised the audience of the Urban Forum of Spain with the announcement that the government would help young people with medium or low income levels to pay the rent of a house with a youth rental allowance, so they could emancipate.

He said this special plan would be included in the 2022 state budget.

The Spanish Prime Minister stressed that the age of leaving the parental home must be lowered to bring it closer to the European average, which is 26 years. In Spain, the age at which children fly out of the nest is one of the highest in Europe.

The allowance, of 250 euros per month for two years (therefore a maximum of 6,000 euros), was intended for young people between 18 and 35 years old who work, but with an annual annual income of less than 23,725 euros.

Real Decree pending

The total budgeted cost of the measure was 200 million euros per year. But this new benefit is not yet approved.

According to the newspaper ABC, the Government has decided to delay the approval of this subsidy. Among the reasons mentioned in the newspaper is that the government intends that young people who pay "expensive" rents cannot access this benefit.

That is, the small print of the legal text will establish that to obtain the housing bond it will not be enough to have a low income, it will also be necessary to prove that a low rent is paid, the maximum amount of which has not yet been decided.

The amount of the aid cannot exceed the price that the young person pays for rent.

Another important aspect is that the Government tries to prevent landlords from taking advantage of the measure to make their rent more expensive.

The rental subsidy for young people will be approved by a royal decree. It is intended to have retroactive effect, from 1 January.

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