Spain's new tax surcharge targets owners of long-term empty homes
Spain’s Housing Law now lets local councils add a surcharge to property tax for long-term empty homes. The measure targets owners with multiple properties left unoccupied for over two years without good reason. Councils must first approve the scheme and set their own rules for declaring a dwelling vacant.
The surcharge applies only under specific conditions. A property must be legally classified as permanently vacant, meaning it has stood empty for more than two years without justification. Acceptable reasons for vacancy include temporary relocations, health issues, or holiday homes under certain rules. The owner must also hold at least four residential properties for the charge to take effect.
Before a property is declared vacant, the owner has the right to present their case. Councils then review evidence such as municipal registration records and utility usage to confirm the vacancy. Once approved, the surcharge is added to the annual IBI (property tax) bill on 31 December each year. The extra charge increases over time, depending on how long the property remains empty. In the most severe cases, it can reach up to 150% of the standard IBI amount. However, the final decision on implementation and exact rates lies with each local council.
The new rule aims to encourage property owners to bring empty homes back into use. Councils will assess each case individually, considering both the duration of vacancy and the owner’s circumstances. The surcharge, if applied, will appear on the annual tax bill and escalate with prolonged inactivity.
