Effective from June 27, 2025, following the entry into force of Decree-Law 5/2025, of March 25, adopting urgent measures on tax, personnel expenses, and other administrative matters, changes have been introduced in Catalonia regarding the tax rates of the Transfer Tax and Stamp Duty (ITPAJD). The most important changes are as follows:

Transfer Tax

1.-      Establishment of a specific tax rate of 20% applicable to transfers of residential properties to large property holders, and to transfers of entire buildings consisting of dwellings (in this latter case, regardless of whether the purchaser is a large property holder or not).

A large property holder is considered to be any individual or legal entity owning more than 10 residential properties or with a built area of more than 1.500 sqm of residential use in Catalonia, as well as any owner of 5 or more urban residential properties located in the residentially stressed market area declared by the Generalitat de Catalunya, excluding garages and storage rooms.

2.-      A general progressive tax rate based on the total value of the property is established, according to the following scale:

Thus, whereas the previous scale taxed the transfer of properties up to 1 million euros at 10%, and above values at 11%, the new scale progressively increases the average tax rate applicable to transfers over 600,000 euros in value, which represents a significant rise in the tax burden for such transactions.

3.-      The maximum eligible age for applying the reduced 5% rate for the acquisition of a main residence by young people is increased from 32 to 35 years old.

4.-      Establishment of a reduced 5% rate for the transfer of a property that is to become the main residence of a person legally considered a victim of gender-based violence, provided that the sum of the general and savings taxable bases, minus the personal and family minimums in the taxpayer’s latest income tax return, does not exceed 36,000 euros, and that certain requirements are met.

Stamp Duty

1.-       Increase in the applicable rate on public deeds for the transfer of property where the VAT exemption has been waived, from 2,5% to 3,5%.

These increases in tax rates may contribute to discouraging investment and the creation of residential supply, aggravating the current housing problem in Catalonia.