Govern i Comuns Strike Bold Pact to Double Property Tax for Major Holders

"Govern i Comuns Agree to Double Property Tax for Major Owners"

The government and Comuns announced new tax measures to combat housing speculation, doubling taxes for large property owners and prioritizing buyers who intend to live in homes.

Carmen Rodriguez3 hours agoLast Update : 3 hours ago

La consellera de Economia, Alícia Romero, y la líder de los Comuns, Jéssica Albiach.

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The Spanish Government and the Comuns have unveiled a new fiscal package aimed at curbing speculation in the housing market. Announced on February 27, 2025, the most significant change is the increase in tax rates for large property owners from 10% to 20%. How will this impact homebuyers and renters across Spain?

5 Key Takeaways

New fiscal measures announced for housing purchases
Tax rate for large property owners doubled
Focus on prioritizing homebuyers over investors
New tax brackets for property transfers introduced
General tax rate set at 20% for entire buildings

Fast Answer: The Spanish Government is raising taxes on large property owners to combat housing speculation. This initiative aims to protect residents and ensure housing remains accessible. The new measures include additional tax brackets for property transfers, targeting wealthier investors.

Spain’s New Housing Tax Measures Target Large Property Owners

What does this mean for the average homebuyer? The recent fiscal changes are designed to prioritize those purchasing homes for living, rather than investment. By increasing taxes on large property holders, the Government hopes to make housing more affordable for everyone.

Warning! These new tax measures could significantly affect the housing market and investment strategies in Spain.

Understanding the Implications of Increased Housing Taxes in Spain

The new tax structure introduces two additional brackets for property transfers, which could reshape the real estate landscape in Spain. Here’s a breakdown of the key changes:

Tax rate for properties valued between €900,000 and €1.5 million is set at 12%.
A 13% tax applies to properties valued above €1.5 million.
A flat 20% tax will be imposed on the transfer of entire residential buildings.
The goal is to ensure that wealthier individuals contribute more to the housing market.

How Will These Changes Affect Homebuyers and Renters?

For homebuyers, the increased tax rates on large property owners could lead to more affordable housing options. As speculators face higher costs, they may be less inclined to drive up prices. This could create a more balanced market where families can find homes without excessive financial strain.

Potential Long-Term Effects on the Spanish Housing Market

In the long run, these measures may help stabilize the housing market in Spain. By discouraging speculative investments, the Government aims to ensure that housing remains a viable option for residents rather than a commodity for profit. This shift could lead to a healthier, more sustainable real estate environment.