Catalonia Charges Tax on 21.700 Empty Homes

5/05/2014 – Expansion

The regional Government of Catalonia estimates that the tax will affect from 10.700 to 21.700 dwellings (originally it assumed 15.000) situated in 70 municipalities where “large housing demand” has been detected. The range is wide as still there is no registry for foreclosed houses remaining empty for more than two years. 

Exceptions are restricted to occupied houses, let them be a subject to a legal process or rented to tourists.

The taxation law makes it clear that all public institutions are exempt to paying the tax, as well as social housing management bodies. However, it does not mention the houses in possession of Sareb that is held by the State and that received almost every soured asset from the sector.

Blueprint of the project includes amendments in the tax application. Originally, it was said to be estimated in regard to square meters owned by a bank but now it will be charged according to the number of foreclosed houses. Up to 120 dwellings the rate will post €500 per asset. It will rise to €825 for 120 to 600 empty homes and to €1.650 for over 600 units.

Banks obtain bonuses in line with the number of flats they intend for affordable rent. Thus, they receive 10% if 10% of their stock granted, 30% if they give between 10% and 25% of their REO assets and up to 75% if more than 40% handed over.


Original article: Expansión (by Marc Menchén)

Translation: AURA REE