Catalonia Approves the Tax on Empty Bank-Owned Homes

16/07/2014 – Expansion

The tax aims at triggering lauch of the empty house stock to the rental market of Catalonia. It is estimated that presently 80.000 stand vacant in the region. Catalonian authorities say the contribution – to come into force on 1st January 2015 – will range from €850 to €1.650 paid per each dwelling annually.

Local Government (Generalitat) foresees collecting between 13 and 25 million euros cap, on condition that the bonuses included in the same law are not applied.

The head of the Regional Planning and Sustainability Department, Santi Vila, explained that the tax will affect the houses which has been empty for at least two years and they are exempt to the legal person, the public administration and the third sector entity taxation.

The aforementioned bonuses will be granted to the banks that destine their foreclosures for affordable rental.

As it turns out, the charge has already taken effect as Catalonia closed conventants with Spain´s bad bank (or Sareb), CaixaBank and Bankia on awarding their repossessions for social renting.

Generalitat estimates there are around 40.000 empty, bank-owned homes in Catalonia. Out of these, about 15.000 stand in 72 municipalities where the demand exists.

The new levy will focuse mainly on those 15.000 properties, largely situated in the city of Barcelona, in Camp de Tarragona and in Girona and Lleida.

 

Original article: Expansión (after: EFE)

Translation: AURA REE

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