Social Housing: What are they, Requirements and Advantages?

With low-income individuals in mind, the Public Administration in Spain promotes the figure of VPO (Vivienda de Protección Oficial), so that the most vulnerable people — 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? 

An Officially Protected Housing (VPO) is a special type of housing construction granted to people in vulnerable situations, at a much lower price than the 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 these types of housing depends on the housing plans of each autonomous community, and there are two types: 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 detail these two types of VPO.

1. Protected housing for rental

Priced housing (VPT): originally built for sale, these properties are instead leased under specific conditions.

Social integration housing (VIS): Exclusively for people in need of social protection. These homes measure less than 130 m² and are rented only, with no option to purchase.

Publicly protected rental housing (VPPA): Access to this type of housing is determined by the family group’s annual income. Units range between 110 m² and 150 m², the larger ones intended for large families.

2. Protected housing for purchase or sale

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

Basic public protection housing (VPPB): These remain under protection for 20 years, although in some cases the owner may sell it before this period, but at a price lower than the legal maximum.

Characteristics of VPO apartments

• In most cases, the surface area does not exceed 90 m², or 120 m² in the case of large families.
• Si la vivienda está destinada para personas con discapacidad o movilidad reducida, puede llegar a tener 108 m2 de superficie.
• 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, it is necessary to meet a series of requirements established to ensure that these homes are allocated to those who need them most. The eligibility criteria are detailed below:

• Spanish citizens or those with permanent residence 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). Note that this limit may vary depending on the Autonomous Community.
• It is essential to be registered in the VPO housing applicants’ registry of the corresponding Autonomous Community.
• People in vulnerable situations are also eligible for this program, including those with a disability of 30% or higher, victims of gender-based violence, retirees facing mortgage debt exceeding their pension, or those with minor children in their care.

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

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 housing (VPO) home released?

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

There is a key requirement to obtain VPO declassification: 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 a minimum of 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 investment property under VPO status is released from this classification after 30 years from the date of 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 the authorization of the public administration and at the price it establishes; therefore, the buyer must also meet the eligibility requirements.

What are the advantages of subsidized housing (VPO)?

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

Drawbacks of subsidized housing (VPO)

• You can not sell a house without an agency during the period it is officially classified as protected (on average, 10 years).
• While a property is classified as subsidized, its sale price will be limited, meaning you cannot sell it at a free-market price.
• VPO properties remain under regulated control for the entire duration of their protection period.

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Conclusion

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