Barcelona Metropolitan Area (AMB) has demanded this Thursday before the Government measures to promote affordable rental housing and the modification of the current legal framework to allow the Habitatge Metròpolis Barcelona (HMB) joint venture to take advantage of Next Generation European funds within the framework of the State Housing Plan, with benefits in VAT and corporation tax. HMB is the new metropolitan operator of affordable rental housing, 50% owned by the public sector (25% AMB and 25% Barcelona City Council) and 50% by the private sector (NICRent Residencial SL).
Habitatge Metropolis Barcelona aims to build 4,500 affordable rental homes in up to eight years. But to achieve this objective, it considers that regulatory modifications are necessary to favor affordable rental housing policies. A delegation from the AMB, headed by its executive vice president, Antonio Balmón, has presented this public-private company to the Ministry of Transport, Mobility and Urban Agenda, to which the proposal for legal changes has been raised.
To optimize HMB’s performance in promoting affordable rental housing, the AMB proposes that the Next Generation regulations and the State Housing Plan (2022-2025) be modified, with the aim that it may include joint ventures, such as HMB.
In relation to the tax treatment that rental housing receives, the AMB suggests changes in the application of VAT and corporate tax, because currently, in the middle of a residential emergency situation, it represents a penalty for companies dedicated to renting housing affordable. The changes in the application of VAT are based on three strategies: homogenize with a reduced VAT of 10% all operations related to the production of housing for rent; establish a preferential tax treatment, with a super-reduced rate of 4%, for the production of officially protected housing for rent, and set a reduced or super-reduced tax on the transfer of land surface rights for rental housing for the first case, and protected rental for the second.
It is also proposed to reverse the recent modification of the corporate tax foreseen in the general budgets of 2022, which reduces the reduction of this tax from 85% to 40% of the full share of the income from the rental of houses.
On November 5, the HMB capital increase was formalized, necessary to launch the construction project of 4,500 homes in the metropolis of Barcelona in a period of 6 to 8 years. During the first quarter of 2022, the first phase of the operation will begin, which plans to build 640 affordable rental homes.