Protected housing regulations in the Comunidad de Madrid

The legislation governing Publicly Protected Housing (VPP) in the Comunidad de Madrid establishes as a fundamental principle that these properties must be used as the primary and permanent residence of individuals who do not own an open-market or protected property. However, the regional legal framework includes specific cases in which a person or family unit that owns a property may be eligible to purchase a VPO.

The central aim of this regulation is to prioritise access to subsidised land and housing for those who truly need it, preventing property speculation. For this reason, to complete a purchase while holding title to another residential property, it is essential to provide documentary proof that the previous property does not meet basic habitability requirements or that there is a firm commitment to sell it.

Legal exceptions for buying a VPO when owning a property

For the competent regional housing authority to authorise the acquisition or endorse the purchase and sale contract, the buyer must fall into one of the following legal circumstances:

• Inadequacy due to floor area: This occurs when the current property is too small relative to the number of members in the family unit. If the usable floor area per person does not reach the minimums set by Comunidad de Madrid regulations, the property is deemed inadequately sized.
• Accessibility issues: When a member of the family unit has a severe disability or reduced mobility and the current property does not meet the necessary accessibility conditions, nor is it technically feasible to carry out the required adaptation works.
• Marital separation or divorce: In cases of annulment, legal separation or divorce, if the property-owning spouse has been deprived of the use and enjoyment of the family home through judicial court order awarding it to the other spouse or children, they are entitled to apply for protected housing.
• Partial ownership through inheritance: Owning an undivided share of a property through inheritance or bequest (mortis causa) does not invalidate the purchase of a VPO, provided that the share does not exceed the percentage set by the authority or grant exclusive use of the property.
• Express commitment to sell: It is possible to sign a private contract for a VPO while owning another property, provided that the buyer formally commits to selling or transferring their previous home prior to executing the public title deed or within the maximum timeframe set by the Regional Ministry.

Types of protected housing in Madrid and access requirements

Different types of protected housing coexist in the Madrid region, the most common being Basic Publicly Protected Housing (VPPB) and Limited Price Publicly Protected Housing (VPPL). Although both share the requirement that the property must be used as a primary residence, the maximum income limits and the strictness of prior asset checks may vary depending on the type of development or whether it is a first or subsequent sale.

In resale transactions (second transfers) of freely promoted VPO, the conditions for transfer may be relaxed, although it remains mandatory to check whether the property remains subject to its public protection regime and the legal maximum selling price set by the authority.

Financing and impact on the mortgage loan

Acquiring a protected property while temporarily retaining another property poses specific financial challenges. Banks analyse the applicant's repayment capacity in detail when two simultaneous mortgages exist or when a bridging loan is required to clear the previous debt.

Having the assistance of intermediarios de crédito inmobiliario is essential for structuring financing optimally. These professionals help assess debt ratios, negotiate conditions adapted to protected mortgage requirements, and coordinate the sales timeline for the existing property with the granting of the new mortgage.

Administrative steps to manage the purchase

To carry out the purchase process for a VPO in the Comunidad de Madrid if you already own a property, it is advisable to follow this procedure:

1. Land Registry verification: Request a nota simple and property ownership certificate from the Land Registry to verify exact title ownership and any encumbrances on the current property.
2. Gathering evidence: Collect documents certifying the grounds for exception, such as family record book (libro de familia), disability reports, technical habitability reports or divorce decrees.
3. Submitting the application: File the documentation with the Housing Ministry of the Comunidad de Madrid to request recognition of the special exception or purchase authorisation.
4. Signing the transfer commitment: If applicable, formalise before a notary or the authority the commitment to sell or transfer the previous property within the legal timeframe.
5. Contract endorsement (visado): Submit the private purchase and sale contract for the VPO to obtain mandatory administrative approval (visado) before executing the public title deed.