Spain Increases Property Taxes for Vacant Residences by up to 150%

Spain is currently facing a severe housing crisis, particularly in major cities like Madrid and Barcelona, which host a high number of immigrants, students, and tourists. Under the new housing bill passed by parliament, rent increases will be limited to 2 percent in 2023 and 3 percent in 2024, instead of being based on inflation. 

Additionally, property taxes for residences that have been vacant for more than two years will be increased by up to 150 percent. These measures aim to increase the supply of affordable housing and make it easier for renters to find suitable accommodation.

Moreover, Prime Minister Pedro Sanchez has pledged to build a total of 113,000 houses in three separate projects for affordable renting for young people and families facing financial difficulties. This commitment is a significant step towards addressing the housing crisis in Spain and providing much-needed relief to those struggling to find affordable housing.

Despite these measures, the cost of renting in Spain remains high, with a single room in cities like Madrid and Barcelona costing between €500-600 per month. The demand for room rentals has increased by 40 percent compared to last year, highlighting the need for further action to address the housing shortage.

The government's efforts to tackle the housing crisis in Spain are a positive development, but more needs to be done to ensure that everyone can access safe and affordable housing. The situation is particularly urgent in major cities, where the housing shortage is having a significant impact on the lives of many people. With continued efforts and investment, it is hoped that Spain can overcome its housing crisis and provide a better future for its citizens.