The new tax rates will come into effect three months after their publication in the Official Gazette of the government of Catalonia, that is, on June 26, 2025. Let’s look at which real estate transactions these apply to.
Chapter III of Decree-Law 5/2025, of March 25, introduces modifications to the tax on property transfers and documented legal acts, highlighting the following points:
- The new tax rates apply to the transfer of real estate, not just residential properties, and to real rights established on such properties, except for guarantee rights, as well as the assignment of these real rights.
- New tax brackets for ITP (Property Transfer Tax) in the TPO (Transactional Property Operations) mode for real estate transactions:
Concept/Amount
Tax Rate
Transfer of a home to young people under 35 years of age and victims of gender-based violence acquiring their
primary residence, as long as their income does not exceed €36,000
5%
Transfer of official protection housing, and the establishment and assignment of real rights, except for guarantee rights
7%
Up to €600,000
10%
From €600,000 to €900,000
11%
From €900,000 to €1,500,000
12%
Over €1,500,000
13%
Transfer (either one-time or successive) of properties to large property holders,
except if the property (house, warehouse, commercial premises) is intended for use as the company’s headquarters or
workplace. Exemptions include social promoters and non-profit entities.
20%
Transfer (either one-time or successive) of entire residential buildings (vertical and DPH) to a large property holder, or to a person (individual or legal entity) who is not a large property holder, except if
the purchaser is an individual, the
building consists of a maximum of 4 homes, and all of them will be the
primary residence* of the purchaser and their family members up to the second degree. Exemptions include social
promoters and non-profit entities.
20%
Definitions:
- Large Property Holder for ITP (Tax on Property Transfer) and Stamp Duty Tax (AJD) purposes:
- An individual or legal entity that owns more than 10 residential properties or over 1,500 m² of residential property.
- An individual or legal entity that owns 5 or more residential urban properties located in Tense Housing Market Zones in Catalonia.
- Primary Residence:
- Includes homes, storage rooms, and up to two parking spaces purchased together.
- A Primary Residence: must be effectively occupied within 12 months of acquisition, with continuous residence for 3 years.
Tax Reductions:
-
- 100% reduction for:
- Non-profit housing cooperatives.
- 50% reduction for:
- Office buildings or unfinished structures converted into official protection housing (must obtain provisional qualification within 3 years).
- Properties intended to be the social headquarters or workplace of companies whose activity is not related to asset management, with the following conditions:
- The property must be used for this purpose within 6 months of acquisition and remain in use for 5 years.
- The business must have its tax and social address in Catalonia.
- The business must increase its workforce in the year the property is acquired and maintain it for 3 years.
- 100% reduction for:
- Large Property Holder for ITP (Tax on Property Transfer) and Stamp Duty Tax (AJD) purposes:
- New tax rates in Stamp Duty Tax for real estate transactions:
- Renunciation of VAT exemption: new rate of 3.5%.
- Public Deeds:
-
- 50% reduction for deeds related to the conversion of office buildings or unfinished structures into official protection housing (VPO).
- 50% reduction for deeds related to the transfer of properties that will become the social headquarters or workplace.
- 75% reduction for deeds of horizontal division by plots for industrial and logistics parks formalized before a Notary until December 31, 2027.
- 100% reduction for young people under 35 years of age who acquire their primary residence, as long as their income does not exceed €36,000.
