Last March, the Government of the Generalitat de Catalunya approved Decree-Law 5/2025, of March 25, adopting urgent measures in the areas of taxation, personnel expenses and other administrative matters.
Among its most important reforms is that of the Property Transfer Tax (ITP) regime, which introduces a progressive rate structure, eliminates tax benefits and establishes a specific tax for some operators, especially large holders and companies acquiring entire buildings for residential use.
These amendments, which will come into force on June 27, 2025 (except for the provisions of immediate application), are intended to move towards greater progressivity and tax fairness in the market for the sale and purchase of used homes in Catalonia.
New tax rate structure
Until now, the ITP in Catalonia applied a general rate of 10% and a reduced rate of 5% for young people under 32 years of age. The reform extends and modifies this scheme as follows:
The reduced rate of 5% will apply to individuals up to 35 years of age (previously 32), provided that their gross annual income does not exceed €36,000.
A progressive rate structure is introduced according to the value of the property:
- Up to €600,000: 10%.
- From 600,000 € to 900,000 €: 11 %.
- From €900,000 to €1,500,000: 12%.
- More than €1,500,000: 13%.
This scale seeks to adapt the tax effort to the value of the transaction, favoring the purchasers of lower-value properties and reinforcing the redistributive component of the tax.
Aggravated taxation of 20% for large holders and transfers of entire buildings
One of the most relevant elements of the new regime is the introduction of an aggravated rate of 20% in the following cases:
- Acquisition of dwellings by large holders, defined in accordance with the regulations in force in Catalonia.
- Transfer of complete buildings intended for residential use, regardless of whether or not they have a horizontal division.
An exception is provided for individuals acquiring the property to be used as their principal residence, provided that they meet the income requirements established in the regulations.
Abolition of rebates for real estate operators
The reform expressly eliminates the 70% ITP rebate that until now benefited real estate companies in certain acquisitions. Unlike the rest of the measures, this provision came into force immediately, on March 27, 2025 (the day after the publication of the Decree-Law in the DOGC).
With this suppression, the Catalan legislator aims to avoid indiscriminate tax advantages and to align the taxation of the sector with objectives of general interest and tax justice.
If you need to assess how these reforms can affect your operations or real estate assets, Busquets will be happy to help you. You can contact us by calling 934 160 004 or sending an email to info@busquets.legal and we will help you with whatever you need.