Catalonia Changes Property Purchase Tax: Rate Increases May Worsen the Crisis

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Catalonia has changed its tax policy in the real estate sector, increasing the property transfer tax (ITP) rates for buyers of high-value housing and large landlords, reports Spanish Property Insight. The new rules came into force on June 27, 2025, and, according to experts, may further aggravate the shortage of affordable housing.

The reform affects all residential property transactions exceeding €600,000. Instead of the previous fixed rates of 10–11%, a progressive scale has been introduced:

up to €600,000 – 10%;

from €600,000 to €900,000 – 11%;

from €900,000 to €1.5 million – 12%;

over €1.5 million – 13%.

The sharpest increase applies to so-called grans tenedors, or large landlords. These include owners of more than 10 properties or over 1,500 sq. m of residential space in the region. In 271 municipalities designated as “high-tension market zones,” this category even includes owners of five properties. For them, the ITP rate is set at 20%.

The same rate now applies to transactions involving the purchase of entire residential buildings, regardless of the buyer’s status. Exceptions are provided only for non-profit organizations, social developers, and individuals purchasing buildings with four apartments or fewer for personal or family residence.



Catalan authorities state that the reform is aimed at “eliminating market distortions” and “achieving fiscal fairness.” According to them, the progressive tax scale will make the system fairer and help shift the burden from buyers in the lower price segment to those acquiring expensive housing or investing in large assets.

However, experts warn that such a system is punitive in nature and undermines interest in investments in key segments. The 20% rate applies regardless of the purpose of the transaction—whether it is the purchase of vacant housing, its major renovation, or its introduction to the rental market. This significantly reduces the profitability of projects related to housing stock rehabilitation and hinders the launch of new initiatives. Despite claims of social orientation, tax exemptions apply only to a narrow range of projects and do not cover most genuine efforts to create affordable housing.

Particularly vulnerable is the long-term rental segment, which is already considered the least profitable. Professional investors willing to ensure stability, quality service, and compliance with the law are losing motivation. Less reliable and less experienced owners may replace them, leading to a decline in housing quality and worsening conditions for tenants.



According to Spanish Property Insight, negative consequences began to appear even before the reform came into force. Major deals were canceled, buyers backed out of commitments, and sellers lost negotiating power. Investment activity dropped sharply, especially in the segment of properties requiring renovation.

The reform has also been criticized by major professional associations, reports Ultima Hora. The increase in the ITP rate will make housing less affordable and lead to higher final prices, said representatives of Foment del Treball and the Catalan Developers Association (APCE).

Josep Sánchez Llibre, President of Foment del Treball, called the tax reform a “fiscal minefield” and emphasized that, despite its declared aim of fairness, it actually increases pressure on all market participants. According to him, the total tax burden when purchasing property in Catalonia already reaches 20–25% of the housing cost, and the ITP hike will push this figure even higher.

Xavier Vilajoana, head of APCE, expressed disappointment that the decision was made without consulting the industry. He noted that the sharp doubling of taxes would complicate the implementation of projects aimed at renovating and expanding housing supply. According to the associations, the reform undermines investor interest, reduces predictability, and increases legal uncertainty, especially in combination with other regulatory measures already in force in the region.

Thus, Catalonia’s tax reform has drawn unanimous criticism from both analysts and the professional community. Instead of encouraging supply and modernization of the housing stock, the authorities have chosen to intensify the fiscal burden. The new rates significantly increase entry costs, reduce project margins, and make the region less attractive to long-term investors. Amid legal uncertainty and limited access to benefits, even socially oriented initiatives become economically unviable. As a result, Catalonia risks losing part of the capital necessary for renewing and expanding its housing stock, which could worsen the shortage and price pressure.