These days everyone is waiting for Trump’s tariffs and how they will affect the world economy, and here in Catalonia, where there are no tariffs at the moment, we are waiting to see how the ITP will rise and how it will affect housing prices.
This decree law has not yet been approved by the Parliament.
The idea is always the same, as it has been thought of to apply price control in order to prevent speculators from buying homes instead of those who need a first home.
In the words of the Minister of Economy and Finance of the Generalitat, Alicia Romero, these are two tax modifications focused on “prioritizing the use of housing for living and also increasing taxes on those who have more and who can also contribute to the common purse.”
“What we are doing is putting taxation at the service of the right to housing. First, so that speculation becomes very expensive. Second, to protect the residents from real estate piracy that is playing with our houses as if they were stocks where they always win. And third, to redistribute wealth and to take care of our cities and towns,” Albiach stressed.
This is how the new sections of the ITP will be
The tax on property transfers (ITP) and documentary legal acts (AJD) will be modified with the introduction of two new sections: transactions with a value of up to 600,000 euros will maintain a rate of 10%, those between 600,000 and 900,000 euros will be taxed at 11%, those between 900,000 and 1,500,000 euros will have a tax of 12%, and those exceeding 1,500,000 euros will be taxed at 13%.
As for large property owners, defined as those who own at least five properties in stressed areas or ten in non-stressed areas, the tax on the transfer of properties will rise from 10% to 20%. This same rate will be applicable to the sale of entire buildings, with or without horizontal division. However, there will be exceptions to the application of this 20%: if the buyer is a natural person and if the building has less than five properties, provided that these are intended to be the main residence of the buyer and his immediate family for at least three years.
Albiach explained that this 20% rate is the maximum allowed by current legislation and stressed that its application to the purchase and sale of entire buildings in any region of Catalonia is intended to discourage speculation.
Elimination of bonuses for real estate companies
Another measure agreed upon in the modification of the tax figures of this tax, by which they expect to collect 200 million euros more per year, is the elimination of bonuses for real estate companies in the transfer of housing.
Personally we think that raising taxes will affect the individual more than the large holder, who evidently has more economic resources in addition to introducing apartments for rent with an even higher price so as not to lose profitability.
Is it true that there is no other resource than taxes? Or perhaps they are telling us the wrong way so that we do not look at the moon, in this case simply raising more money by hitting a sector such as real estate that is “necessary” and “vital” for any community.
For posterity the difficult verdict, what do you think?
Davide Rigoni CEO INversiones Grup
