The old rents are aimed at a group of people over 70 years old, with contracts signed before November 1990 and incomes up to the third IRS bracket, in which, according to an official source from the Ministry of Housing, "for tenants the only possible increase will be the one resulting from the application of the update coefficient scheduled for 2024".
According to the government, from the second half of the year, a solution will be introduced that is lower than that already demanded by landlords, compensating landlords for this increase. However, despite being approved by the Council of Ministers, more details about this compensation measure are still unknown, only that it will be limited to "1/15th of the taxable value of the property".
According to data published by the Housing and Urban Rehabilitation Institute (IHRU) in a study, more than 80 per cent of the tenants holding these contracts are over 70 years old, and 70 per cent have incomes up to the third IRS bracket (based on the 2020 tables), with an annual salary of up to 15,992 euros.
With regard to the table of landlords accounted for, 18.7 per cent have annual incomes equivalent to the sixth IRS bracket (incomes already between 26,356 and 38,632 per year).
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