Catalonia plans to increase rent subsidies for vulnerable households

The Catalan government will increase the income threshold for those who can benefit from rental grants from €20,000 to €30,000, while also increasing the bonus offered from €300 to €500.  

The new rental grants will be included in the budget bill, yet to be officially presented or debated in the Catalan parliament.  

The measure is designed to benefit vulnerable groups such as young people, the unemployed, single-parent families, large families, people with disabilities and widows and windowers. 

The accompanying law also includes the reduction of personal income tax (IRPF) for 2.6 million taxpayers. This reduction will see those in the lowest tax bracket, earning up to €33,000, pay 9.5% in personal income tax rather than 10.5%.  

The measure also establishes other tax innovations, especially in the area of gender-based violence, such as reducing the tax burden on changes of address or inheritances. The government has approved a deduction from personal income tax for regular rent by the victims of gender-based violence of 20%, up to €1,000 per year. This rises to 25% and €1,200 if, in addition, the woman has a disability.