The Catalan Parliament has passed a law establishing a new tax on empty houses (considering as empty houses those dwellings which have been unoccupied for more than two years without a justified cause), with the aim of reducing the number of empty houses and promoting social rent. Financial entities and real estate companies with portfolios of houses which meet these characteristics, will be particularly affected by this new tax.
The law establishing this new tax on empty houses will enter into force on the day following its publication in the Official Gazette of the Generalitat of Catalonia, which will take place, foreseeably, in the coming days.
We briefly summarize the main features of this tax:
- Territorial scope: The tax is applicable in the territory of Catalonia.
- Taxable event: The tax is levied on the permanent vacancy of a dwelling for more than two years without a justified cause (the need for restoration or the illegal occupation are considered justified reasons for leaving empty houses).
- Taxable persons: Legal entities that own empty houses or hold a usufruct right, a surface right or any other in rem right that grants the right to economic exploitation of those houses, qualify as taxable persons. Individuals are not subject to this tax.
- Exemptions: The law sets out exemptions in favor of: (i) entities of the third sector; (ii) houses made available for social programs; and (iii) houses located in certain areas which qualify as low demand areas.
- Taxable base: The taxable base of this new tax consists of the total number of square meters of the houses subject to the tax which are held by the taxpayer.
- Tax liability: The amount of the tax liability is the result of applying to the taxable base the corresponding tax rate according to the following scale:
| Taxable base until (number of square meters) |
Tax liability (euros) |
Remaining taxable base until (number of square meters) |
Tax rate (euros/square meters) |
| 0 |
0 |
5,000 |
10.0 |
| 5,000 |
50,000 |
20,000 |
15.0 |
| 20,000 |
275,000 |
40,000 |
20.0 |
| 40,000 |
675,000 |
Onwards |
30.0 |
- Tax reliefs: The tax liability can be reduced if part of the houses held by the taxpayer are intended for social rent, according to the following table:
| Percentage of houses intended for social rent |
Percentage of tax relief |
| 5%-10% |
10% |
| 11%-25% |
30% |
| 26%-40% |
50% |
| 41%-67% |
75% |
| More than 67% |
100% |
- Accrual: The tax is due on 31 December of each year and it affects the stock of houses that is held by the taxpayer on that date.
- The law creates a Registry of empty houses.
