Social Housing: What It Is, Requirements, and Benefits

With low-income individuals in mind, public authorities in Spain promote Officially Protected Housing (VPO) to ensure that the most vulnerable people—those with limited financial resources or special needs—have access to their own home. We invite you to keep reading to learn more about this topic.

What is Officially Protected Housing? 

Officially Protected Housing (VPO) is a special type of housing provided to people in vulnerable situations at a price significantly lower than market value.

Each autonomous community has its own housing plans and special conditions for allocating them.

The owner must comply with a series of rules, such as using the home exclusively for residential purposes and as their main residence. To sell it, they must wait a certain number of years. 

Types of Officially Protected Housing

The construction of this type of housing depends on the housing plans of each autonomous community, and there are two categories: those intended for rental and those built for personal use or sale. Learn how much the capital gain tax is when selling one of these properties. 

 Next, we will explain these two types of VPO.

1. Subsidized housing for rent

Price-regulated housing (VPT): Originally built for sale, these properties are leased under specific conditions.

Social integration housing (VIS): Exclusively for individuals in need of social protection. These units measure less than 130 m² and are available for rent only, with no option to buy.

Publicly subsidized rental housing (VPPA): Eligibility for this housing is based on the family group’s annual income. Units range from 110 m² to 150 m², with the larger ones reserved for large families.

2. Subsidized housing for purchase or sale

Price-Limited Housing (VPPL): These buildings can measure up to 150 m² and are built only on land designated for social housing.

Basic Public Protection Housing (VPPB): These homes remain under protection for 20 years, although in some cases the owner may sell them earlier, but at a price below the legal maximum.

Characteristics of VPO apartments

• In most cases, the floor area does not exceed 90 m², or 120 m² for large families.
• If the home is intended for people with disabilities or reduced mobility, it may have up to 108 m² of floor area.
• They must be used exclusively for residential purposes.
• Prices are lower than the market price for homes in the area.

Requirements to access VPO housing

To apply for Subsidized Housing (VPO) in Spain, applicants must meet a set of requirements designed to ensure these homes are allocated to those who need them most. The eligibility criteria are detailed below:

• Spanish citizens or residents with permanent residency in the country may access this program.
• Applicants must be of legal age.
• Neither the applicant nor their direct family members may own another home, and they must not have previously owned a VPO.
• The applicant’s income must not exceed three times the Annual Public Multiple Effects Income Indicator (IPREM). This limit may vary depending on the Autonomous Community.
• It is essential to be registered in the VPO housing applicants’ registry of the relevant Autonomous Community.
• People in vulnerable situations are also eligible for this program, including those with a disability of 30% or more, victims of gender-based violence, retirees with mortgage debt exceeding their pension, or those caring for young children.

How to know if your home is a subsidized (VPO) property?

To determine if your home is VPO, you can consult the Public Works Department of your Autonomous Community.

You can also check at the Property Registry to see if it is registered under a housing plan or has a qualification certificate.

How is a subsidized (VPO) home released?

The process of declassifying a subsidized home is the exclusive competence of the Autonomous Community that originally granted the classification; only they can initiate and complete the procedure to remove this protection.

A key requirement for VPO declassification is the return of all public subsidies received by the owner, unless the minimum legal term for the property to be considered free-market has passed (usually 30 years).

If you request declassification before the deadline, the owner must repay not only the public subsidies originally received, but also the corresponding legal interest, calculated from the moment the aid was granted until the final approval of the declassification by the Autonomous Community.

How long must you wait before selling VPO properties?

The qualification as a VPO has a time limit set by each Autonomous Community.

Generally, a property under VPO status is released from this classification 30 years after purchase. However, in many cases, subsidized housing can be released after just 10 years from the initial sale.

If the VPO is still within its qualification period, it can be sold, but only with authorization from the public administration and at the established price; the buyer must also meet the eligibility requirements.

What are the advantages of subsidized housing (VPO)?

• The main advantage is the cost savings; the price is much lower compared to other homes in the same area.
• You can access housing in excellent condition within your own community, suited to your income level.
• Depending on your Autonomous Community, you may receive additional types of aid, such as easier access to loans, the option to take out a reverse mortgagesand certain tax benefits.

Drawbacks of subsidized housing (VPO)

• You can not sell a house without a a real estate agency during the period it is officially classified as protected (on average, 10 years).
• While a property is classified as subsidized, its sale price is capped, so you cannot sell it at a market rate.
• VPO properties remain under regulatory control for the entire duration of their protection period.

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Conclusion

If you are interested in purchasing a second-hand VPO (subsidized housing) property, first check whether it is still within its qualification period in the Property Registry. If you meet the eligibility requirements, you can apply for a mortgage for the subsidized housing, exploring several options until you find the one that best fits your profile.