New Rent Subsidies Available As Of Today

UPDATE: Prolonged with one year, through Royal Decree 637/2016 of December 9th 2016, so valid for 2017 as well.

As of today, the rent subsidies that had been announced by central government in April 2013, will become available to those that meet the requisites as outlined in the Rent Subsidy Plan. The Ministry had to reach agreements with each of the Autonomous Communities and then the relevant Order from the Ministy had to be published in the State Buletin for the Plan to come into effect, which happened yesterday. The Ministry has made 2.311 million euros available to finance the subsidies that will be granted either as direct subsidies, or as subsidies with interest.

How much are the direct subsidies?
Up to 40% of the actual rent a tenant pays for his habitual and permanent residence, with a limit of 2.400 euros a year.

When will the subsidies be paid?
Monthly, pro rata the yearly amount granted.

For how long will the subsidies be paid?
For 12 months, renewable on request of the tenant, with 12 months every time, as long as the Plan runs, i.e. till the end of 2016.

Who can apply for the subsidies?
Anyone of age, with a rental agreement or wishing to enter into one. In the latter case, the contract must be handed over within 30 days after having received notification of subsidies granted.
Income limit, generally speaking 3 times the IPREM indicator which amounts to 3 times 532,11 euros a month for 2014 for each ´convivencia unit´ which consists of all the persons living at one residence, habitually and permanently, whether they are related or not, or whether they appear on the rental agreement or not. It is not mentioned how you would prove the consistency of this ´convivencia unit´ but I think it is highly probable you would have to supply a Certificado de Empadronamiento that mentions all those registered at the residence. Each case will be valued individually, depending on the amount of persons living and earning income at the residence.

How and where to apply?
Is up to each of the Autonomous Communities to decide, specifically the Consejería in charge of Vivienda. Would suggest making enquiries at your Town Hall, either the ´Vivienda´ department, or Social Services.

What happens to those in receipt of ´la renta básica de emancipación´?
This will disappear with this new Plan. Those in receipt of the ´renta básica´ will continue to receive it for as long as it was granted. If you decide to apply for the subsidies available under the new Plan, your old rights to the ´renta básica´ will disappear as soon as your right to the new subsidy has been established and confirmed.

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Please note: The information provided is based upon our understanding of current legislation. It is not legal advice but is provided freely to enable you to be properly informed. We recommend that if you are considering taking action, you should seek professional advice.