Barcelona to Recalculate Property Taxes: The More Apartments You Own, the Higher the Rate

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The Barcelona City Council intends to revise legislation and tighten control over the housing market. The proposal introduces a progressive scale for owners of multiple apartments, under which the property tax rate will increase depending on the number of units, reports Russpain. The measure could affect thousands of property owners and become a precedent for the rest of Spain.

The core idea of the reform is to link the property tax rate (IBI) directly to the number of properties owned by an individual: the more apartments you own, the higher the tax. Since this tax remains the main source of municipal revenue, any change will require detailed legal and economic analysis. The initiative is being discussed between the city administration and the parties supporting the mayor. The sides agreed to prepare an official request to Spain’s Ministry of Finance to amend the law on local budgets and establish a progressive scale at the national level.

Additional Measures

Alongside the progressive tax for multi-property owners, city officials are also considering other adjustments. In particular, they plan to equalize tax benefits for large and single-parent families. The city also intends to legally prohibit landlords from passing tax costs on to tenants — a rule already enshrined in Spain’s national housing law.

Special attention is paid to the hotel sector. For hotels with a high cadastral value, especially those in the luxury segment, the tax rate could increase to 1.3% within the next two years. For owners of such properties, this would be a noticeable blow, especially considering the ongoing ban on new hotel construction in central districts.

The reform affects not only taxation but also the balance of the urban environment. The municipality plans to restrict tourist-oriented retail stores to preserve a comfortable setting for local residents. Additional funding will go toward upgrading infrastructure in neighborhoods that require support, such as Besòs. While the proposals are still under discussion and require national approval, it is already clear that Barcelona is preparing for major changes in property taxation and management.

Tax Initiatives in Catalonia

Earlier, the government of Catalonia reformed the property transfer tax (Impuesto de Transmisiones Patrimoniales, ITP). Since June 27, 2025, a new progressive scale has been in effect across the region:

10% — for properties up to €600,000;

11% — from €600,000 to €900,000;

12% — from €900,000 to €1,500,000;

13% — for properties exceeding €1.5 million.

For large property holders (grans tenidors), the government introduced a higher ITP rate of 20%. This category includes individuals and legal entities owning a significant volume of residential real estate. The measure aims to reduce the concentration of housing stock in the hands of investors and corporations managing large portfolios.

The End of Easy Investments

Spain’s housing market has entered a new phase: restrictions, moratoriums, and rising taxes are gradually eroding the profitability of short-term rentals. Where investors once counted on returns of up to 4%, they now face regulatory uncertainty, licensing costs, and fines reaching hundreds of thousands of euros. Even moderate inflation is cutting into real margins, making returns less predictable.

Regional differences are widening. Barcelona plans to phase out the VUT segment by 2028, Málaga has frozen new licenses, and Seville is implementing direct control measures — all of which limit access to short-term rental formats. The Supreme Court of Valencia has shown that local bans are not always sustainable, yet the overall trend is clear: regulation is tightening, and rental strategies are becoming increasingly risky.

Analysts at International Investment note that Spain remains attractive but challenging for investors. Legal, tax, and inflationary factors now determine outcomes more strongly than location or view. Property is no longer a “passive investment” but an asset that requires ongoing management, flexibility, and readiness to adapt to new rules.

Investor’s Notes: Spain – Where Renting is Harder and Risks Are Higher