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1. Higher Tax Imputation for Empty Homes or Second Residences
A bill (registered on May 22) is currently being processed to increase the imputed income in the personal income tax (IRPF) for these types of properties.
The imputation rate would rise from the current 1.1%–2% of the cadastral value to 3%, which would increase the annual tax bill by at least €400 for a property with a cadastral value of €200,000 (from €2,200 to €2,600).
The aim is to encourage owners to rent out their homes instead of leaving them empty (PSOE proposal).
2. 21% VAT for Tourist Rentals
The proposal also includes raising the VAT on tourist rentals from the current 10% to 21%, aligning it with hotel services.
The goal is to reduce the appeal of tourist rentals and return properties to the residential market.
3. 100% Surcharge for Non-EU Foreign Buyers
The same reform includes an additional 100% tax on the property value under the transfer tax (ITP) for real estate purchases made by non-EU residents.
This measure, still under parliamentary debate, aims to curb international speculation.
Other Relevant Changes
It is proposed to raise the tax on SOCIMIs (listed real estate investment companies) from 15% to 25% on undistributed profits derived from rental income.
There may also be revisions to the Wealth Tax and capital income taxation, according to the broader fiscal reform package recently presented.
Who Will Be Affected?
| Type of Owner | Impact |
|---|---|
| Empty home or second residence | Higher imputed income tax (up to cadastral value × 3%) |
| Tourist rental property owner | VAT increases from 10% to 21% |
| Non-EU foreign property buyers | 100% surcharge on the transfer tax (ITP) |
| Large holders / SOCIMIs | Increased tax on undistributed rental profits |
Next Steps
- Parliamentary phase: these measures are part of a socialist bill that has already been submitted; final approval is still pending.
- Monitoring: changes, amendments, or delays may occur during the process.
- Action: if you fall into one of these categories (second residence, tourist rental, planning to sell to foreigners, etc.), it’s advisable to consult a tax advisor to assess your situation.
