Six years on, the tax targeting large landlords with vacant properties is moving from proposal to reality. The new housing law, issued under the umbrella of Estremadura and Mobility, Transport and Housing, as explained by the regional minister, Leire Iglesias, will impact all legal entities that own more than five vacant homes within a rolling twelve-month period. Regional officials estimate that roughly 40 to 50 companies, banks, and investment funds will fall under the tax. The charge per square meter of vacant housing will vary by region and will be tiered: from a base rate of 7.5 euros per square meter for holdings exceeding 500 square meters, up to 22.5 euros per square meter for owners with more than 4,000 square meters of vacant property. (Attribution: Ministry briefing)
The bill earned Board approval on Monday. The Extraordinary Governing Council, followed by presentations from Iglesias and spokesperson Juan Antonio Gonzalez, advanced the registration process in parliament, triggering the start of the legislative procedure. It will be available during the current session, with Iglesias indicating that the law will take effect after the year ends due to summer holidays, effectively delaying its implementation. (Attribution: Ministerial statements)
The legislation closes the current legislative cycle, but its contents have sparked high interest because it contains several pledges from the executive. Promises linked to commitments made by Guillermo Fernández Vara and other leaders include housing reforms discussed in the prior legislative period when the party did not hold a clear majority. The most significant element is the vacancy tax, which aims to complete the regional housing framework that had remained unfinished in 2019 because parts of its regulatory development required statutory backing. (Attribution: regional government records)
control leases
Experts say the aim of the tax is to stabilize the rental market by discouraging the hoarding of empty homes by large entities and by limiting price pressures driven by tight supply. Iglesias stressed that the region does not face a shortage of real estate overall, but notes that the available supply for rent can be constrained.
Consequently, the tax will apply only to legal entities, notably banks, large companies, and mutual funds, that own more than five homes and keep them vacant for a cumulative year. The rate will be regionally calibrated and tiered: starting at 7.5 euros per square meter for vacant units above 500 square meters, increasing toward a maximum of 22.5 euros per square meter for holdings exceeding 4,000 square meters.
Officials estimate that 40 to 50 firms will be affected in Extremadura, though the exact number should be reviewed as data is consolidated. A self-assessment process will be introduced, modeled after similar procedures used by other autonomous communities such as Valencia or Catalonia. (Attribution: regional tax authority)