Where does the money for subsidies come from?

Public grants and subsidies

The EU provides funding for a wide range of projects and programs. Strict rules apply to ensure rigorous control over how the funds are spent and that the money is used in a transparent and accountable manner.EU funding takes many different forms:

DirectFunding managed by the EU, usually in the form of grants for specific projects related to EU policies. You can apply for this type of funding by participating in a call for proposals.Application procedure for direct fundingCheck out the beneficiaries of direct EU funding in your countryShared managementA funding system managed in partnership with national and regional authorities, which accounts for approximately 80% of the EU budget. Five main funds are used for this, within the framework of the Structural and Investment Funds:IndirectFunding managed by national and regional authorities, not by the EU. Also called grants, this type of funding can be applied for at national level.See all open funding opportunities.

Government subsidies

3. That the rented dwelling constitutes or will constitute the habitual and permanent residence of the lessee, which must be accredited by means of a certificate or census registration form showing, as of the date of the application, the persons who have their habitual residence in the dwelling that is the object of the rental contract. The dwelling will constitute habitual and permanent residence during the whole period for which the aid is granted.

It will be considered unit of coexistence to the group of people that inhabit and enjoy a housing of habitual and permanent form and with vocation of stability, with independence of the existing relation between all of them.

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4. That the income of the persons who have their habitual and permanent residence in the rented dwelling, whether or not they are stated as holders of the lease contract, does not exceed the following limits:

Resolution of April 25, 2018, of the Department of Social Services and Rights, by which the regulatory bases for the granting of aid for the rental of housing are approved. [cód. 2018-04360] BOPA May 11, 2018.

Types of subsidies

For example, in some countries foodstuffs such as bread or chicken are subsidized. This is so that suppliers can lower their prices but do not lose income because the government provides them with a subsidy. It also occurs in cases such as electricity or heating.

This is the case of subsidies to the unemployed, once they exhaust their unemployment benefit (which is a right if they have contributed for it), or if they are not entitled to it. In these situations, governments provide additional assistance or subsidies to help cover basic food and other necessities.

Subsidies are encouraged by certain governments for social purposes. However, they also have detractors who claim that they only serve to discourage social improvement or efforts to get a job.

In addition, subsidies are also an expense for the state. Thus, there is an opportunity cost. Whatever the state spends on subsidies, it cannot spend elsewhere in the economy. Examples of these areas would be health, education, justice or other types of social policies.

Foreign trade subsidies

It is the contract by virtue of which a person -landlord, owner, usufructuary- undertakes to give to another -tenant, tenant- the use and enjoyment of a dwelling for a specific period of time and in exchange for a specific price, the rent.

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The rental price of these dwellings is lower than the market price after being included in rental stock exchange operations, protected rehabilitation actions or protected housing developments.

Possibility of repaying the loan -totally or partially- before the agreed time. It is necessary to know if the credit institution recognizes this possibility and under what conditions -if it establishes a minimum amount and the amount of the commissions-. In general, a percentage is usually charged on the amount amortized in advance, to compensate the financial loss that implies the alteration of the agreed amortization schedule.

Real estate agent. A qualified professional who acts as a mediator to help the interested parties sign the real estate contract that has been entrusted to him, whether it is a lease, sale and purchase or other related contracts. Usually charges a percentage of the sale price as consideration or commission.

Where does the money for subsidies come from?
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