Maricarmen Abascal, 87, was forced out of her Madrid home after living there for seventy years, setting off protests across Spain. The eviction has put Pedro Sánchez’s government under political pressure, while Junts holds the deciding vote on any new antieviction law.
Carles Puigdemont and his Junts party have drawn a line: they will not back the so-called 'decreto Maricarmen' unless the government agrees to major tax breaks for renters and homebuyers. Junts wants a 15% personal income tax (IRPF) deduction for basic-residence rentals, capped at 11,630 euros a year, along with similar relief for people with mortgages. The party is also pushing for tax-free home sales for seniors over 65 who move into care homes. Another demand would let families cancel their mortgage if the bank sells the loan at a loss to another lender. Junts has also proposed reinstating housing savings accounts to restore tax incentives for first-time homebuyers saving for a home.
These ideas were once off-limits for the PSOE and Sumar, but the government is now reviewing them swiftly. Officials are trying to strike a deal with Junts before the next Council of Ministers meeting and avoid another failed extension, like the one in April. Junts sources say the PSOE is open to suspending evictions from homes owned by investment funds. There is also talk of barring the funds from buying more properties in Spain, and a government counteroffer is expected soon.
Pressure is also coming from outside the political parties. Tenant unions, including the Confederación de Sindicatos de Inquilinas (CSI), say the decree must pass now. They call the situation "extreme" and want far-reaching changes: a freeze on current rents and extended leases. They also want seasonal and room rentals regulated, along with indefinite contracts. Activists are urging major unions CCOO and UGT to call a general strike over housing and living costs if the government stalls.
Sumar spokesperson Ernest Urtasun says the party is ready to discuss Junts’ tax proposals and acknowledges the urgency of the housing crisis. The government’s shift reflects mounting pressure in parliament and on the streets; long-held positions are changing as tensions rise.
Several Spanish media reports say the proposed 15% tax deduction would apply only to taxpayers with a taxable base of no more than 33,007.20 euros, targeting lower- and middle-income renters and buyers.
The next cabinet meeting is set for Tuesday. Sánchez must decide whether to meet Junts’ tax demands as calls for change grow. The government’s credibility and hold on power are at stake amid fragile housing policy and coalition negotiations, with street protests adding pressure.
