Last Friday, June 27, the new Property Transfer Tax (ITP) coefficients came into effect in Catalonia, applicable to all home purchases for an amount exceeding €600,000. Similarly, they will also affect large property owners involved in real estate transactions (for these, a coefficient of 20% is set), and the acquisition of entire residential buildings (without distinguishing, in the latter case, between large and small owners). Finally, it is worth mentioning that other measures, such as the end of the 70% Property Transfer Tax (ITP) discount for real estate companies that resold properties within a period of up to 3 years, had already been in effect for a few months.
Remember that in Catalonia, the following will be considered large property owners:
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- Individuals or legal entities with more than 10 residential properties or with a constructed area exceeding 1,500 m2 for residential use.
- Individuals or legal entities with 5 or more residential properties or with a constructed area exceeding 1,500 m2 for residential use, in an area declared a stressed residential market (currently, 271 municipalities in Catalonia are classified as stressed areas).
The new ITP (Income Tax) rates approved by the Generalitat de Catalunya and ratified by the Parliament are as follows:
On the other hand, the tax rate applicable to transfers of residential property where the buyer is a large owner will be 20%, except in special cases (for example, in the case of a social developer or non-profit entity, or when the property is used for a social purpose).
Regarding the purchase of an entire residential building, the applicable rate will also be 20%, regardless of whether the purchaser is a large owner (except for social developers, non-profit entities, or acquisitions for social purposes, or if the purchaser is a natural person who acquires a building with a maximum of four dwellings, provided that they use them as their primary residence or that of their family members).
In addition to the tax increases, the decree also introduces a new increase in the age of young people who until now enjoyed the reduced 5% rate for the purchase of a primary residence, from 32 years to 35, as well as the introduction of a reduced 5% rate for the purchase of a primary residence for victims of domestic violence.
