Tax Changes in Housing Decree-Law 5/2025

Decree-Law 5/2025, of March 25, introduces important tax changes, especially in housing-related taxes. It is currently awaiting review and approval by the Council of Statutory Guarantees. The most notable changes are:

Inheritance and Gift Tax: Adaptations to the economic reality, applicable as of June 27.

Property Transfers and Documented Legal Acts: Simplified processes and clarified tax regulations for property transfers.

New Rates for Property Transfer Tax:

- 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%.

*Special Rates for Property Purchases in Catalonia:

- Increased Tax of 20%: Applicable to large holders (owners of more than 10 properties or with more than 1,500 m² of residential use) and for the transfer of entire buildings. Exceptions and Reduced Rates:

-Reduced rate of 5%: For young people up to 35 years old with incomes under €36,000, also applicable to victims of domestic violence.

*Bonuses:

-100% for non-profit housing cooperatives.

-50% for properties used as subsidized housing or as corporate headquarters or workplaces.

*Stamped Legal Documents (AJD):

-100% discount for deeds of primary residences for young people up to 35 years old with incomes under €36,000.

This tax scheme seeks to incentivize young people and certain purchasing conditions, while applying a higher tax rate to large property owners. We will have to wait for its implementation and results.