Bill proposes new taxes to curb housing speculation

Automatic summary, not yet reviewed

1. The bill would remove the tax benefits of SOCIMISOCIMI A Spanish real estate investment company listed on the stock market; it had a tax regime with advantages., companies that invest in real estate. Their homes would have to be rented for at least seven years, at reference prices, with no tourist or seasonal rentals and with contracts for regular residential use.
2. The bill would remove the VAT exemption for renting out furnished apartments with hotel-like services or stays of under 30 nights in municipalities with 10,000 or more residents, effective October 1, 2025.
3. The bill would apply a reduced VAT rate to homes bought by individuals under 35 and to special-regime officially protected or public-promotion housing, when sold by their developer.
4. The bill would create a new tax, complementary to VAT, for anyone buying a home who already owns two or more. The rate rises with the number of properties: 4% for the third, 8% for the fourth, 12% for the fifth, and 12% plus 5% for each additional property. The revenue would go to the autonomous communities under the common regime.
5. The bill would let city councils in stressed residential market areas apply differentiated property tax (IBIIBI The yearly property tax paid to the local council.) rates to at most 30% of the municipality's properties. They could charge a surcharge of up to 50% of the tax bill to large landlords and tourist accommodations, and up to 100% if the owner cannot prove five consecutive years of residence in Spain.
6. The Government could issue the rules needed to implement the law, which would take effect the day after its publication in the Official State Gazette (Boletín Oficial del Estado). Rules that conflict with it would be repealed.

Who it affects

• SOCIMI and large real estate investors: They would lose their tax advantages and have to rent their homes at capped prices and conditions.
• People under 35: They would buy their first home at a reduced VAT rate.
• People who own two or more homes: They would pay an extra tax when buying another one, with rates that grow with the number of properties.
• City councils in stressed areas: They could apply differentiated property tax rates and surcharges to large landlords and tourist accommodations.
• Owners of tourist or seasonal apartments: They would lose the VAT exemption and could face property tax surcharges.

Words worth knowing

SOCIMI

A Spanish real estate investment company listed on the stock market; it had a tax regime with advantages.

Gran tenedor (large landlord)

A person or company that owns many homes.

IBI

The yearly property tax paid to the local council.

Zona de mercado residencial tensionado (stressed residential market area)

An area where rents have risen sharply, declared under Law 12/2023, of May 24, on the right to housing.

Cuota líquida (net tax liability)

The final amount of tax due, after deductions.

It summarizes the text as it was introduced. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries