The Law 1/2026, of 8 April, marks a significant shift in Spain’s housing model by consolidating right-to-use housing within the national legal framework.

This model, already present in certain autonomous regions and cooperative schemes, now benefits from clearer, more stable and consistent regulation, backed by a specific tax treatment and institutional support that positions it as a genuine alternative to traditional renting and individual ownership, in line with the framework set out by the Law 12/2023, of 24 May, on housing.

For property developers, this law opens up a new avenue for developing projects with less exposure to speculation and greater collaboration with cooperative bodies and public authorities. Ultimately, right-to-use housing for property developers is establishing itself as a strategic alternative to traditional development models.

A clearly defined legal model

The law expressly establishes that right-to-use housing cannot be classed as either a tenancy or a purchase, but rather a model of collective ownership with a right of use linked to cooperative membership. This framework turns right-to-use housing for property developers into an autonomous legal figure, with its own clear and predictable rules.

Essential elements of the model:

• Ownership of the property: title always belongs to the cooperative.
• Right of use: members obtain a stable right of use, generally indefinite or of very long duration.
• Initial contribution and instalments: access is arranged through an initial contribution plus a periodic instalment.

Prohibition of speculation

The law reinforces the social nature of the model by establishing that:

• The right of use may not be sold on the open market.
• A member leaving the cooperative is entitled to the return of their updated initial contribution, without generating private capital gains.

This is a key point for developers, as it removes speculative volatility but also limits individual revaluations.

A reinforced and more stable tax regime

One of the pillars of Law 1/2026 is bringing these cooperatives within the regime for specially protected entities, which unlocks a set of significant tax benefits.

Main incentives:

• Property Transfer Tax (ITP): Possible exemption or rebate on the constitution of the right of use.
• Property Tax (IBI): Municipal rebates of up to 95% are encouraged for cooperative housing projects.
• Reduced VAT: Reduced rates are consolidated for the construction of right-to-use housing, aligning it with the treatment given to subsidised housing. This sits alongside other tax matters relevant to the sector, such as VAT between developer and builder.

This framework significantly reduces development and running costs, improving the long-term viability of projects. As a result, right-to-use housing for property developers is particularly attractive from a tax perspective.

Strengthening the position of the member-user

The law strengthens the legal certainty of the user, who ceases to be a tenant and becomes a cooperative member with reinforced rights.

Main guarantees:

• Right to information: Full transparency is required over the cooperative’s financial management.
• Inheritability of the right of use: The right may be passed on to heirs, provided they meet the cooperative’s membership requirements.
• Protection in the event of a dispute: Internal resolution and cooperative arbitration mechanisms are prioritised, reducing ordinary litigation typical of tenancies.

This shift reduces court disputes, but calls for more robust governance structures.

Boost to public-cooperative collaboration

The law actively promotes the involvement of public authorities through the transfer of public land.

Main mechanisms:

• Surface rights of up to 75 years: Allows cooperatives to build and manage housing on public land without the public body losing ownership.
• Land reserves in urban planning: Specific percentages of land may be earmarked for right-to-use housing, setting it apart from traditional subsidised housing (VPO).

This approach opens the door to large-scale projects with lower land costs, one of the main bottlenecks in the property sector.

Implications for property developers

For the development sector, right-to-use housing for property developers represents a structural shift in how residential development is conceived:

• Less exposure to volatility in the sales market.
• Greater stability in long-term operation.
• Collaboration with cooperatives as development vehicles.
• Access to public land or favourable planning conditions.
• A need for more sophisticated legal and financial structures.

In practice, developers stop being solely sellers of a real estate product and become managers of long-term residential projects, working alongside social bodies and public authorities.

Housing cooperatives?

You’ve come to the right place. At Blegal we are firm advocates of the right to housing and have extensive experience in right-to-use housing. Whether you manage cooperatives or are an individual member, we answer your questions and offer legal solutions tailored to each situation, supporting our clients throughout the whole process. If you are a developer looking to explore right-to-use housing for property developers as a business model, our team can advise you at every stage of the project.

Photo by Stuart Frisby on Unsplash

Frequently asked questions about right-to-use housing