Why is emancipation from parents in Spain called RBE a topic for the owner of a holiday home in Tenerife?
Absolutely... Knowledge is power.
It is important to have heard about Spanish rental laws, at least.
We all want to know what is going on in the market. Some of you may have some ideas. Do you want to help the Spanish youth to become more independent? Perhaps some job to manage a vacation villa or its marketing could be arranged?
Lets fill you in now about the news regarding RBE emancipation from parents in Spain.
This RBE has been mocked in a way in July 2012.
It should not be forgotten that the RBE was a real breakthrough from centuries of Spanish traditions.
The former Spanish President José Luis Rodriguez Zapatero of the PSOE Socialist party introduced the RBE rental benefits in 2008 for the under 30 age group. It was valid from 22 years onwards. Many young Spaniards were struggling at the time to pay off rising real estate bond rates. On the other hand, this new Spain law was to speed up emancipation from parents.
Furthermore, this new youth benefit RBE also appealed to family fathers.. Why? Some of them had grown tired of supporting fledglings who had outgrown the nest, but were not likely to leave it. Such men left it and their spouses, instead of staying housebound. Meantime, it has been traditionally quite acceptable for mothers to have kids and grand children living all in one house. But preferred living in cities made it more expensive.
Unfortunately in 2012, the new Spanish President Mariano Rajoy and his party saw themselves forced to do away with the very basic rental aid RBE to Spain's youth. Then by October 2012, talk about a compromise was made public.
The 118151 candidates who were approved in 2011 to get aid for 2012 will be carried over for 2013.
Meantime, the total limit of youngsters who may be helped by a minimum of €220 has been reduced to 150 000. This leaves room and hope for another 30390 who applied already.
This is contrary to what was said in July. Then a cut by 30 per cent was to be implemented for the subsidy to below Euro 200 per renter.
This was bitter, as many salaries in Spain don't surpass € 900- Euro 1200/month, while tax and social security come off too.
300000 benefit receivers as well as about 280000 landlords will suffer, eventually.
All this means that rental aid will still be paid to those who contracted it already. This will be valid until the cut off date and age 30, unless their salaries surpass the benefit limit before that time. Mind that 30 year old grown ups should have reached emancipation from parents, by the latest.
The change which will assist Spain to reach its goal of minimum deficit is another dramatic stroke. It will not help an economy which is already suffering from a surplus of properties for rent due to Spain's 5 million unemployed, bank confiscated real estate and virtual total standstill of the Spain construction industry.
Therefore, rental should not be your immediate priority for investing in Tenerife or any other Spanish property. However by all means, buy property now, as prices couldn't be lower and before the announced tax augments will be implemented in 2013. Mind that the banks mortgage offers never carried interests that low since 2001.
Anyway, it remains to ask if subsidies for better education for a new Spanish industry may not have been more futil for emancipation from parents. Why? The time until 30 is the best time for learning.
Spanish traditions of solidarity and family sociology
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