An increase in the tax on empty apartments is planned in Spain. Other reforms are coming.

The Spanish government plans not only to introduce a tax on the purchase of housing for non-EU foreigners, but also to raise taxes on real estate investment funds, empty houses, and rental properties. These measures, announced earlier this year by Prime Minister Pedro Sanchez, are aimed at improving housing affordability.

The Socialist Parliamentary Group (PSOE) has introduced a bill aimed at stimulating the construction of affordable rental housing.Among its key points are:

1. Increase of VAT on tourist apartments to 21%. Thus, daily rental will be equivalent to real economic activity.
2. An increase in the tax on real estate investment funds (REITs) from 15% to 25%, with the exception of affordable housing, for which the 15% rate will remain. The rate will be halved for organizations that allocate more than 60% of their housing stock to affordable rentals, and reduced to zero for those who allocate more than 60% to affordable rentals and reinvest profits in affordable housing over three years.
3. The most controversial initiative property transfer tax for foreigners, individuals and companies that are not residents of the European Union.The measure will apply to the purchase of real estate throughout Spain (with the exception of the Basque Country and Navarre) and will cover all properties except the rights to pledge real estate.The offer does not apply to business owners and professionals, except in cases where their activities are not subject to VAT. In this case, they will be required to pay a new tax.
4. Updating the tables for calculating the increase in the value of urban land (plusvalía) in accordance with recent decisions of the Constitutional Court on the tax on municipal capital gains.
5. The introduction of a progressive scale of taxation for vacant real estate in order to encourage its rental.Currently, rates range from 1.1% to 2%.
6. Transfer of public land and assets to a new public housing company for the construction of affordable housing. 

Possible innovations in Spanish legislation and the market situation discussed in the article.

Source: Idealista