Spain Proposes 100% Corporate Tax Exemption for SOCIMIs Investing in Affordable Rentals

In a significant new proposal from Spain’s PSOE-led government, SOCIMIs (Spanish REITs) could receive a 100% corporate tax exemption if they dedicate part of their property portfolios to affordable housing. The measure is designed to channel more institutional investment into long-term, accessible rental markets, rather than luxury or short-term rental sectors.

Here’s what the new proposal means for real estate funds, property managers, and Spain’s housing policy.

What Are SOCIMIs?

SOCIMIs (Sociedades Anónimas Cotizadas de Inversión Inmobiliaria) are Spain’s version of Real Estate Investment Trusts (REITs). They:

• Are listed companies
• Receive tax benefits if they distribute most of their earnings as dividends
• Primarily invest in rental real estate assets

Until now, SOCIMIs paid 15% corporate tax on non-distributed profits. Under the new proposal, this would be eliminated if the investment is used for affordable rentals.

Key Details of the 2025 Proposal

• 100% exemption from corporate income tax (Impuesto de Sociedades)
• Applies only to the portion of activity invested in affordable housing projects
• To qualify, SOCIMIs must:
  • Offer long-term leases
  • Set rental prices below market rates
  • Comply with affordability and housing law standards

The goal is to incentivize institutional landlords to shift investment from tourist rentals or high-end real estate to accessible, regulated housing.

Why This Matters for the Housing Market

Spain’s real estate landscape is under pressure from:

• Rising housing costs in major cities
• Declining affordability for low- and middle-income tenants
• Excessive focus on tourist and luxury property investments

This proposal aims to:

• Increase the supply of long-term affordable rentals
• Make it financially attractive for large funds to support housing policy goals
• Redirect capital away from speculative property sectors

Impact on SOCIMIs and Investors

For REITs and property investment firms, this measure could:

• Enhance profitability in regulated housing segments
• Encourage portfolio diversification
• Provide stable, tax-efficient income streams over time

It may also attract more international funds into Spain’s regulated rental market, especially those already investing in social or workforce housing.

Compliance and Monitoring

To prevent abuse, the proposal will likely include:

• Reporting requirements on how much of the portfolio qualifies
• Oversight to ensure rents remain within affordability limits
• Conditions on minimum lease durations and tenant profiles

How Taxadora Can Help

At Taxadora, experts in spanish tax forms, we work with foreigners who own properties in Spain, for their own use or for investment to receive rental income. We can guide you through the Spanish tax system regardless if you are a non-resident or a permanent resident in Spain.

Final Thoughts

Spain’s 100% corporate tax exemption for SOCIMIs investing in affordable rentals is a bold step to align private capital with public housing needs. If approved, it could reshape investment flows and promote more sustainable housing models across the country.

For updates on Spanish property tax reforms and strategic tax advice, visit our blog or contact Taxadora today.