The Government of Catalonia has approved several fiscal measures concerning property transfers, citizen income, and tourism.
During the Executive Council meeting on March 25, officials greenlit a 1-point reduction in personal income tax (IRPF) to 9.5% for the lowest bracket (incomes below €33,000), while doubling the tourist tax across all categories. In Barcelona, visitors will now pay between €2-€7 per person per night. The package also includes modifications to the Property Transfer Tax (ITP), introducing reduced rates for specific groups and setting a maximum 20% rate for major property owners.
These fiscal measures, outlined in two legislative decrees, aim to establish a "more progressive" taxation system favoring young taxpayers, lower-income earners, and vulnerable groups, while implementing policies to improve housing access and combat real estate speculation. Both decrees require parliamentary approval.
ITP Reforms: New brackets and 20% maximum rate
The Property Transfer and Legal Documented Acts Tax (ITP), which applies to resale property transactions, now features reduced rates for specific groups and increased rates for properties exceeding €600,000.
Key changes include:
- Extended eligibility (from 32 to 35 years) for youth qualifying for the 5% reduced rate on primary residences
- New 5% rate for victims of gender violence purchasing primary residences
- Two new progressive brackets: 12% and 13% for higher-value properties
- 20% rate applied to:
Major property holders acquiring real estate
Purchases of entire residential buildings (exempting individuals buying ≤4 units for personal/family use)
IRPF Reduction for incomes below €33,000
The income tax reform aligns Catalonia with regions like Andalusia and Aragon, simplifying the scale from 9 to 8 brackets - benefiting taxpayers with taxable bases under €33,000 annually.
Rental deduction requirements were also adjusted: - Age limit increased from 32 to 35 (+16,183 eligible taxpayers)
- Income ceiling raised from €20,000 to €30,000 (+14,589 beneficiaries)
- Maximum deduction increased from €300 to €500
- Removal of the requirement that rent must exceed 10% of taxpayer income
Three new deductions were established: - Up to €1,000 for rental costs of gender violence victims
- Up to €3,000 for capital contributions to agricultural/housing cooperatives
- €150 (individual) or €300 (joint) for fostering minors
Tourism tax increase across all categories
The overnight stay tax has doubled throughout Catalonia:
- Barcelona: €2-€7 per person/night
- Rest of Catalonia: €1.2-€6
For the first time, 25% of revenue will fund housing policies, with remaining funds supporting sustainable tourism development, seasonality reduction, and low-emission mobility initiatives.
