Blogs
What's New Trending
-
- May 25, 2025
- Uncategorized
- (0)
- 02 Mins
PSOE Proposes New Real Estate Taxes to Improve Affordable Housing in Spain
The Spanish Socialist Workers’ Party (PSOE) has introduced a comprehensive tax reform aimed at making housing more affordable and accessible in Spain. The new legislation targets tourist apartments, foreign buyers, investment real estate trusts (SOCIMIs), and empty properties to reduce speculation and increase rental housing supply.
Key Measures in the Proposed Law:
1. Higher VAT on Tourist Apartments
Tourist apartments will now be subject to a 21% VAT rate, aligning their tax treatment with commercial hospitality businesses. This aims to regulate the booming tourist rental market and encourage long-term rentals.
2. Increased Taxes for Investment Funds (SOCIMIs)
The tax rate for SOCIMIs will rise from 15% to 25% if they do not allocate most of their properties to affordable rentals. Incentives are offered for funds dedicating over 60% of their portfolio to affordable housing, including reduced tax rates and profit reinvestment benefits.
3. New Tax on Foreign Buyers (Non-EU Residents)
A new tax will target real estate purchases by foreigners who are not residents of the European Union. The goal is to limit speculative buying by international investors and prioritize access for local residents.
4. Higher Taxes on Empty Homes
Tax rates on vacant properties will increase and become more progressive to encourage owners to rent out empty homes. Municipalities will be empowered to add surcharges to further mobilize these properties into the rental market.
5. Extended Tax Deductions for Energy Efficiency Improvements
Tax deductions for investments in energy-saving home renovations will be extended through 2025, promoting sustainable and cost-efficient housing.
6. Other Notable Measures:
- Updating the municipal capital gains tax (plusvalía) for fairness.
- Expanding rental income tax bonuses for landlords offering below-market rents.
- Supporting long-term public-private partnerships (up to 80 years) to boost affordable housing construction.
- Regulating the activities of the new public housing company to ensure continuous affordable housing supply.
Timeline and Implementation
The PSOE intends to present the bill to the Spanish Congress in the first half of June 2025. Once debated and approved, the new tax framework will come into effect, reshaping the Spanish real estate market.
What This Means for Property Owners and Investors
- Owners of tourist apartments should prepare for increased VAT liabilities.
- Investment funds will be encouraged to prioritize affordable rentals to benefit from lower tax rates.
- Non-EU foreign buyers will face new taxes when purchasing property, potentially limiting speculative acquisitions.
- Owners of vacant homes may see higher taxes and incentives to rent their properties.
- Homeowners improving energy efficiency can benefit from extended tax credits.
Conclusion
PSOE’s proposed tax reforms aim to reduce housing speculation, increase the availability of affordable rentals, and ensure fairer taxation of different real estate sectors. These changes mark a significant step towards addressing Spain’s housing crisis and improving living conditions for residents.
Stay informed about the latest Spanish real estate news and market updates with us.
Tags:
PSOE, Spain real estate taxes, tourist apartments tax Spain, SOCIMI tax increase, foreign buyer tax Spain, empty homes tax, affordable housing Spain, energy efficiency tax deduction Spain, Spanish property market 2025
