At last, the green light has been given for the incentives from the Economic and Fiscal Regime (REF) to be used in housing intended for rent, both in construction and in the acquisition of properties. The condition is that these houses are later offered for residential or long-term lease. This means they are rented to families for use as a permanent home, or to individuals who need a place to live for an extended period, usually several years.
In other words, holiday homes and short-term rentals are excluded. This is a fundamental legislative change to combat the housing affordability crisis experienced by the islanders and to address the ‘housing emergency’ declared by the Government of the Canary Islands at the beginning of 2024.
Indeed, allowing REF incentives to be used in housing – as long as they are destined for the residential or long-term market – has been one of the key demands of the Archipelago’s builders. The private sector plays a role as significant as that of the public administration to reverse the housing shortage.
The possibility of using REF incentives – especially the Canary Islands Investment Reserve (RIC), the most powerful of them – for housing is crucial for construction companies to build up to 6,000 homes over the next two years.
