The Spanish Parliament recently rejected a bill introduced by the Catalan separatist party ERC, which sought to address alleged speculation in the real estate market by imposing a tax on the purchase of housing starting from a third property. Despite full backing from the PSOE and other left-wing coalition partners, the proposal was defeated due to opposition from the PP and Vox parties, with PNV and Junts abstaining.
ERC’s Proposal and Its Goals
ERC argued that the Spanish real estate market has become a "safe haven" for investors, and that ensuring the right to housing requires increased state intervention rather than simply expanding construction. Their tax initiative aimed to curb speculation by penalizing the accumulation of multiple properties by large owners through an additional levy on purchases starting from a third home.
Details of the Proposed Tax
The bill proposed that buyers of a third property would pay an additional 4% tax on top of the standard VAT. This surcharge would increase to 8% for a fourth property, 12% for a fifth, and an extra 5% for each additional property thereafter. The proposal also included measures such as reduced purchase taxes for young buyers, elimination of tax benefits for socimis (listed real estate investment companies), raising VAT on tourist apartments to 21%, and increasing the minimum property tax (IBI) rate for housing owned by large landlords that is not their primary residence.
Opposition and Criticism
Critics labeled the bill as "tax populism" that would fail to improve housing access and could deter investment in rural and low-demand areas. They cautioned that the measures risked "criminalizing" small landlords and undermining incentives for companies that develop affordable rental housing.