The Spanish Government Announces 210 euros a month subsidy to those under 30 years old who rent
he Spanish President, José Luis Rodríguez Zapatero, has announced that as from 1st January those under 30 years old who rent a house or flat to live in will receive a government monthly grant of 210 euros towards the cost of their rent as well as a government guarantee for 6 months.
In a press conference in the Spanish Parliament Zapatero explained that all those between the ages of 22 and 30 years old who are employed with incomes under 22,000 euros would be entitled to the grant as well as a 600 euro loan to help pay a deposit. The grant will be available for a maximum of 48 months. If there is more than one person eligible for the grant living in the same house or flat then the grant will be apportioned.
Zapatero also announced a second measure that all those renting with incomes under 24,000 euros will be able to get the same tax rebates as people with mortgages as from 1st January 2008.
These measures are to be included in a new law and are expected to cost the government 348 million euros per year in tax rebates and 436 euros in grants. Around 361,000 young people are expected to benefit from these grants in the first year and 700,000 families are expected to be eligible for tax rebates on the rent they pay.
Carme Chacón, the Housing Minister said that these measures were drawn up together with the Spanish Treasury headed by Pedro Solbes.
The government sees the new measures as an important step towards achieving the objective of increasing the number of people who rent their first residence in Spain which is only 11% at the moment, a figure well below the European average.
Related: Renting property in Spain