Get ready for the tax changes that will define 2025. The Catalan Government (Generalitat) has launched a package of fiscal measures set to take effect on 27/06/2025. The aim is clear: to discourage property speculation and improve access to housing. These reforms, which build on measures already introduced at the national level, will substantially reshape the tax landscape for large property holders.
Written by Josep Maria Asbert
Civil and criminal lawyer
Are you a large property holder in Catalonia?
Increase in Property Transfer Tax (ITP)
One of the most significant measures is the increase in the Property Transfer Tax (ITP) rate from 10% to 20% for large property holders. This increase applies to both the purchase of individual residential units and entire buildings, with the aim of discouraging the speculative accumulation of properties and promoting greater social use of housing. For example, where a property valued at one million euros previously generated a tax liability of €100,000 for a large holder, the fiscal cost will now be €200,000.
Exceptions: this rate will not apply where all of the following conditions are met simultaneously:
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The buyer is a natural person.
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The building acquired contains a maximum of four dwellings.
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All dwellings are used as the primary residence of the buyer or their family members for at least three years.
Who is affected by the 20% rate?
- Individuals or entities owning 10 or more residential properties or holding more than 1,500 m² of built residential floor space.
- From 5 properties in areas designated as under housing stress.
- In transactions involving the purchase of entire buildings.
New Tax Bands
In addition to the specific rate for large property holders, new progressive bands have been introduced for the Property Transfer Tax (ITP):
- Up to €600,000: 10%.
- From €600,001 to €900,000: 11%.
- From €900,001 to €1,500,000: 12%.
- Over €1,500,000: 13%.
- Large property holders and entire buildings: 20%.
AND AT THE NATIONAL LEVEL?
Alongside the changes in Catalonia, the Spanish central government has introduced new fiscal measures in 2025 that will also affect large real estate portfolios:
Increase in the Cadastral Reference Value
Since January, this value has risen by up to 10% in certain areas, increasing the tax burden on:
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Second-hand property purchases (Property Transfer Tax is calculated on this value).
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Inheritances and gifts of real estate (subject to Inheritance and Gift Tax).
Changes to Personal Income Tax (IRPF) on property sales
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Reduction of the exemption for over-65s: reduced from €240,000 to €180,000.
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Reinvestment in a primary residence: only 50% of the capital gain is exempt if the property is sold within 3 years of acquisition.
Increase in Local Property Tax (IBI)
Local councils may increase the IBI (council tax on real estate) in respect of:
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Vacant properties in stressed housing areas (surcharge of up to 50%).
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Short-term tourist rentals (up to an additional 75% on top of the standard IBI charge).
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Luxury properties, with the removal of previously available tax reliefs.
Mandatory Registration for Large Property Holders
Decree-Law 2/2025 requires all large property holders, whether individuals or legal entities, to register with the Register of Large Property Holders administered by the Catalan Housing Agency. The register is designed to monitor and regulate real estate activity in stressed housing areas.
Removal of Tax Reliefs for Property Companies
Tax reliefs that previously benefited property companies on the transfer of residential units have been abolished. This measure reinforces the redistributive thrust of the reform and prioritises residential use over speculative activity.
Economic and Social Impact
These reforms are expected to generate approximately €200 million in additional annual tax revenue, which will be channelled into public housing policies, including the construction of social housing and rental assistance for vulnerable groups. They are also intended to curb speculative practices that have contributed to rising property prices.
Conclusion
The tax reforms introduced in Catalonia represent a significant shift in the regulation of the property market, with a clear focus on redistribution and improving access to housing. Large property holders must adapt to these new rules, which not only increase their tax burden but also impose additional administrative obligations. All parties affected should carry out a thorough review of their position to ensure full compliance with the new legal and tax requirements.
