Owners of more than five hundred homes in the Community of Valencia are now facing a brand new tax payment. These properties are predominantly held by large investment funds rather than private individuals, and many are fully enclosed, tenantless buildings. This situation has already drawn penalties from the Generalitat, which has signaled a shift in policy toward ensuring that vacant assets are put to use. The tax is part of the Law on the Social Function of Housing, a framework that the ministry led by Héctor Illueca of Unides Podem believes will start generating revenue from December, with monthly charges accruing as the months go by. In 2022, a sizable portion of these properties remained unoccupied. At present, 532 residences appear on the official register, and owners who hold more than ten properties must disclose to the Administration which floors are not in use, enabling closer monitoring of vacancy rates.
The regulatory scaffolding needed to begin implementing this tax is being prepared even as the Ministry of Finance is temporarily unavailable, with Arcadi Spain directing the process of determining how the charge will be calculated. The final amount will vary according to the total land area held by homeowners as a group. For properties with up to 5,000 square meters, the statutory rate is 7.5 euros per square meter. For holdings up to 40,000 square meters, the rate rises to 22.5 euros per square meter, potentially reaching a maximum liability of 600,000 euros for the largest portfolios. The regulation also foresees fines of up to 300,000 euros for major owners who fail to notify the Administration or to declare vacant units that have remained unoccupied for at least a year.
Currently, the province of Alicante registers the highest concentration of these properties, with 219 properties listed with the Generalitat, followed by Valencia with 184 and Castellón with 129, according to data from the Generalitat’s Directorate General for Emergency Rehousing. Early communications this year show a trend toward rising figures, a pattern expected to continue as the year advances.
Mobilizing resources to address the housing emergency stands as a central pillar of Botànic, especially through Unides Podem, which supports the cause advocated by the Second Vice-President. The political program seeks to marshal more public and private resources to improve housing access and curb speculative practices. Banks and private equity funds are high on the agenda. The tax itself is designed to target large owners, with the cost potentially reduced if a property is rented out. In parallel, the Department of the Branch has launched initiatives such as my Xarxa Lloga, a program aimed at making rental housing more accessible to citizens and bringing unused properties into the rental market at affordable prices. Authorities estimate that roughly 20,000 unoccupied homes are held by financial institutions within the autonomous region, a figure that suggests the current registered total is just the tip of the iceberg.
Looking ahead, Generalitat plans to advance further steps with the Ministry of Housing drafting a law that would compel large property owners to temporarily transfer properties that have not been inhabited for at least two years. This proposed measure signals a broader push to convert dormant real estate into usable housing, aligning policy with social needs and market realities while maintaining a careful watch on compliance and enforcement.