Rent Out Your Empty Home For 100€’s!

Spain’s housing crisis has become impossible to ignore.

Rental prices continue to rise across many areas of the country, particularly in cities such as Madrid, Barcelona, Valencia, Málaga and Alicante, while thousands of properties remain empty for years at a time.

Now, the Spanish government is trying a different approach:
instead of only building new homes, it wants to convince owners of empty properties to put them back onto the rental market by offering financial incentives.

Under Spain’s proposed 2026–2030 State Housing Plan, some owners could receive up to €600 per month for making vacant homes available for affordable rental schemes. Additional grants for renovations and property improvements may also be available.

So, what is Spain actually proposing?

The government’s idea is relatively simple:

If an owner has a property sitting empty, they may be able to place it into a public or semi-public affordable housing programme. In return, the owner could receive:

• Up to €600 per month in public support
• Rental income from tenants
• Grants for refurbishment or renovation works
• Additional compensation guarantees for potential damages

The aim is to increase the supply of affordable rental housing without waiting years for new developments to be built.

Importantly, owners would still keep ownership of the property.

How would the system work?

Although the final rules may vary between different autonomous communities, the current framework suggests that:

• The property must generally have been vacant for a certain period
• The property would need to be placed into an approved affordable rental scheme
• The owner would normally commit the property for several years (reports currently refer to a minimum period of seven years)
• Rental prices would be capped below market levels
• Public bodies or authorised entities may manage the tenancy process

In theory, this is designed to give owners more security and more predictable income while also helping tenants access affordable housing.

Renovation grants could also be significant

One of the biggest issues with long-empty properties is that many need work before they can be rented safely.

The proposed plan therefore includes additional aid for renovations.

According to multiple reports, owners may be able to obtain:

• Up to €12,000 for rehabilitation or adaptation works
• In some cases, between €30,000 and €35,000 for more substantial renovations
• Compensation packages of up to €18,000 linked to damages or restoration obligations at the end of the scheme

This could become particularly relevant for inherited properties, second homes, or older apartments that have been unused for years.

Why is Spain focusing on empty homes?

Spain has millions of vacant properties according to estimates from the INE (National Statistics Institute), although many are located in rural or low-demand areas.

At the same time, many urban and coastal areas are experiencing severe shortages of long-term rental housing.

The government believes there are several reasons why owners leave homes empty:

• Fear of non-paying tenants
• Concerns about property damage
• Long eviction procedures
• Tax implications
• High renovation costs
• Uncertainty around rental regulation

This new proposal appears designed to reduce some of those concerns by offering financial support and greater institutional involvement.

But there are still important questions

At the moment, many details are still unclear.

For example:

• Which properties will qualify?
• How will “empty home” status be defined?
• Which regions will actually implement the schemes?
• Will foreign owners qualify?
• What legal protections will owners receive?
• What happens if the tenant stops paying?
• Will participation affect future sales or taxation?

These practical details will matter enormously.

And as with many housing measures in Spain, implementation will likely depend heavily on each autonomous community. Some regions may adopt the programmes enthusiastically, while others may apply stricter conditions or limited budgets.

Could this affect foreign owners?

Potentially, yes.

Many non-resident owners in Spain keep properties empty for part of the year, especially holiday homes.

At the same time, Spain has also been discussing tougher tax measures for vacant properties, particularly in high-pressure housing areas.

This means that over the next few years, we may see a combination of:

• incentives for owners who rent properties out, and
• increased pressure on owners who leave homes permanently empty.

For foreign owners, understanding the tax and legal implications before joining any programme will be essential.

Our view

This proposal shows how serious Spain’s housing shortage has become.

The government is clearly trying to unlock existing housing stock rather than relying solely on new construction.

For some owners, especially those with inherited properties or homes sitting empty due to fear of tenant issues, these incentives may become attractive.

However, owners should be cautious before entering any public rental scheme.

The financial support may sound appealing, but the legal conditions, duration commitments, tax consequences and management structure will all need careful review before making a decision.

As always in Spain, the small print matters.

If you own an empty property in Spain and are considering renting it out, obtaining proper legal and tax advice first could save you from expensive mistakes later.