Housing decree revives the Financia Europa Account, pending ratification

Return of the European account after legislative rejection

The Council of Ministers approved Royal Decree-Law 29/2026 on October 6, 2026, reviving the Financia Europa Savings and Investment Account after Congress rejected the previous text (RDL 26/2026) the week before. According to sources at the Ministry of Economy, Trade and Business, headed by Carlos Cuerpo, the account’s terms remain unchanged, although the decree was revised to pass the legal-validity review after the earlier rejection. The Financia Europa label is retained to identify products that promote investment in the European economy.

The current legislative process is critical: with Parliament dissolved following the calling of early elections for November 29, the measure must be ratified by the Permanent Deputation of Congress. The PNV has confirmed that it will vote in favor, giving the decree a majority of 35 out of 69 deputies, compared with 34 for the PP, Vox, and Junts. Although reports point to a high likelihood of approval, there is no confirmation yet that ratification has taken place. The measure has been published in the Official State Gazette (BOE) and is pending ratification; until it is approved, its legal status is not final.

Terms and tax advantages of the standard account

The account is intended for long-term retail investment and will be available to all personal income tax (IRPF) taxpayers. It may be opened with banks and investment services firms once the Treasury order on tax-reporting obligations has been approved.

Main features:

• Contribution limit: Up to 150,000 euros per person.
• Tax deferral: Capital gains are not taxed while they remain in the account, similar to the transfer of traditional investment funds.
• Exemption after 5 years: Gains are fully exempt up to 10,000 euros, with an exemption of 20% on amounts above that figure.
• Eligible assets: Shares in companies in the European Economic Area (EEA) and funds that invest at least 70% of their portfolio in Europe, with a minimum of 50% in equities (at least 35% of which must be European stocks).

Reinvestment option linked to vacant housing

The decree also introduces the Financia Europa Reinvestment Savings and Investment Account, a product linked to the sale of homes to public entities. This option seeks to encourage the transfer of homes that have remained vacant, continuously and without just cause, during the two years preceding the sale.

Conditions for the exemption on sale:

• Eligible buyers: Public administrations, agencies, or companies engaged in social and affordable housing.
• Deadline: Sales completed before December 31, 2027.
• Maximum price: Less than 800,000 euros.
• Automatic exemption: Full for homes sold for 200,000 euros or less. Above that amount, the exemption decreases progressively until it disappears at 800,000 euros.

The seller may exempt the remaining portion of the gain by reinvesting the corresponding share of the sale price in this specific account. They have six months to do so from the sale (or from the date the account becomes available if the sale took place earlier). This account accepts only money from these sales, up to a total of 800,000 euros per taxpayer, and the funds must remain in the account for at least five years. Early withdrawal entails repayment of the tax benefit, except in the event of death.

Operational restrictions and regulatory development

Although the measure has been published, its full operation is subject to pending regulatory developments and ratification:

1. Treasury order: This is needed to establish entities’ tax-reporting obligations. Until it is approved, neither the account nor the SIALPFE can be opened.
2. CNMV register: The National Securities Market Commission must create a register of eligible funds within a maximum of four months. Until this register exists, the general account may include only shares, excluding traditional funds and listed funds (ETFs).

The financial sector has shown interest, especially neobanks such as InbestMe, MyInvestor, Trade Republic, and N26, which have begun working on developing the product. However, Inverco has warned that only 5% of the current fund assets meet the account’s requirements. Giorgio Semenzato, CEO of Finizens, says that the mandatory 50% minimum in stocks “may exclude savers who need a more conservative portfolio” and that concentration in Europe “may reduce geographical diversification.”

Financia Europa Individual Long-Term Savings Insurance (SIALPFE)

The decree also creates the SIALPFE, a new type of long-term savings insurance offered by insurance companies. Unlike the investment account, this product is more geared toward conservative investors.

• Contribution limit: Up to 10,000 euros per year (compared with €5,000 for other similar instruments).
• Equity requirement: Minimum 30%.
• Tax exemption: Returns are exempt if the capital is not withdrawn before five years.
• Assets: EU/EEA shares (excluding socimis), eligible funds (excluding sicavs), and fixed-income securities issued by EEA issuers with a minimum rating of BBB. Derivatives are excluded.