A legislative proposal that redefines rental tax incentives, penalises speculation, and sets new rules for SOCIMIs, tourist rentals and foreign buyers. Are we witnessing a turning point in the Spanish real estate market?
The Socialist Parliamentary Group has submitted a Bill to the Spanish Parliament that could mark a significant shift in the fiscal treatment of the residential property market. The draft introduces measures aimed at promoting affordable rental housing, penalising vacant properties, tightening the tax regime for SOCIMIs, and redefining the tax framework for short-term tourist lets and property acquisitions by non-residents.
With a clearly interventionist approach, the initiative seeks to bring empty housing stock back into use and improve access to housing for young people and vulnerable groups, through a combination of incentives and new taxes.
Affordable rental, progressive taxation and new requirements for SOCIMIs
Key measures include income tax deductions (IRPF) of up to 100% for rentals meeting certain conditions, a progressive imputation of notional income on vacant properties, and a comprehensive reform of the SOCIMI tax regime, introducing a new 25% levy on undistributed profits.
The proposal also redefines the fiscal treatment of short-term tourist rentals, which will be subject to 21% VAT in specific urban areas, and introduces a new national tax applying a 100% rate on property purchases by non-EU residents — a move designed to curb speculative investment in the housing market.
A paradigm shift with cross-sector impact
If enacted, these reforms would have a direct impact on property owners, investors, tourism operators, real estate funds and digital rental platforms. They represent a shift in the regulatory and fiscal landscape of the residential market.
In this Tax Alert prepared by Grant Thornton’s tax team, we offer an in-depth analysis of the key elements of the proposed legislation and its potential implications.
Download the full document to explore the details and assess the potential impact on your operations.
