This report presents possibilities of creating a simulation model that can be used for the estimation of the spatial impacts of social policies, as well as their socio-economic impact. The report builds on past work in the area of microsimulation to present a new spatial simulation methodology including the dynamic simulation of household spaces as an alternative to household simulation. Microsimulation has been widely used by governments around the world for the analysis of redistributive policies and budget changes. Nevertheless, the report argues that there have been very few examples of extending these simulation models to enable the estimation of geographical impacts of policies.