The Council of Economists believes that tax benefits can help boost investment in housing for rent. The body specialized in tax advice of the General Council of Economists of Spain (REAF) presented a report on the Declaration of Income and Equity last April. In that document, they analyzed the ...

Use taxation to boost the rental market?

The Council of Economists believes that tax benefits can help boost investment in housing for rent.

The body specialized in tax advice from the General Council of Economists of Spain (REAF) presented a report on the Declaration of Income and Equity last April. In this document, they analyzed the state and regional news of this campaign and informed the taxpayers about the issues that must be taken into account when making the income statement.

The president of the General Council of Economists Valentín Pich believes that with the accounts presented, the Government will be able to fulfill its stability commitments with Brussels. However, he acknowledged that part of the increase in tax collection is based on the evolution of economic activity and this continues to present some uncertainties.

Likewise, the president showed concern about the evolution of the rental price in In recent years: "If this situation persists, the tenants will have to press for an increase in wages to be able to live, which will undoubtedly have an effect on the economy, through more inflation and loss of competitiveness." "Either it is a housing policy in earnest, or this is going to be a mess".

However, it recognizes that it is a very complex issue that a large part of the competences are in the hands of the autonomous communities and town halls. But he admitted that taxation can be a very powerful instrument and everything that is done to boost investment in rent would be good, given the rebound in rents .

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In this case Spain is behind other European countries. Pich recommended to the rulers what can be done from taxation to curb the rise in house prices , although he admitted that it seems bad now to recommend investing in housing.

On the other hand, he acknowledged that there are many nuances when thinking about the possibility of recovering rent deductions for tenants, remembering that fraud problems should be avoided.

Tax advisors also highlighted how contributions to pension plans have been reduced in recent years. "We believe that it should be possible for all those citizens who can save to complete their public retirement pension to do so without forcing us to go against the public system," Pich said.

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