Barcelona moves towards 150% property tax surcharge on holiday rentals

Owners of holiday flats in Barcelona face the prospect of an increase in the taxation of their property of up to 150 per cent, according to a proposal which has been approved by the town hall. The aim of the authorities is to reduce the tourist supply and to tackle the housing crisis.

The proposal, backed by Barcelona City Council’s Economy and Finance Committee on Friday, October 9, would introduce a sliding scale of surcharges on Spain’s property tax, known as Impuesto sobre Bienes Inmuebles (IBI), depending on how many tourist apartments an owner holds.

One would pay a 50 per cent surcharge if he had one. If he owned four or more, the surcharge would be 150 per cent.

This proposal comes only a few days after the Spanish government passed a new housing law which would allow cities designated as high-pressure areas to impose a surcharge on tourist accommodation.

In the first place that is putting this increase into practice is Barcelona, but the increase is not yet definitive, and must be put into effect with the municipal authorization.

How much more could Barcelona holiday rental owners pay?

The proposed tax changes referred to licensed tourist apartments rather than to all residential property in Barcelona.

In the terms of the scheme passed by the Economy and Finance Committee, the surcharges will be levied in accordance with the number of tourist properties that each of them owns.

• One tourist apartment: a 50 per cent increase in the existing IBI bill.
• Two or three tourist apartments: a 100 per cent increase, effectively doubling the existing bill.
• Four or more tourist apartments: a 150 per cent increase, bringing the total bill to two and a half times the original amount.

A property owner whose annual IBI for a tourist apartment was 500 € would have to pay 750 € at the rate of 50 per cent, for example. At a rate of 100 per cent it would rise to 1,000 € and at 150 per cent to 1,250 €.

These figures are merely illustrative and not official figures. They depend on the present IBI on each property.

According to the council of Barcelona, the city has 10,627 licenses for tourist apartments.

Of these 6,077, almost 60 per cent of the total, belonged to proprietors of four or more tourist establishments; another 3,274 belonged, as a rule, to the owners of one establishment each, while 1,276 belonged to those who owned two or three.

The figures show that the highest surcharge is applicable to the majority of the city’s licensed tourist accommodation, but that does not necessarily mean that the majority of individual owners would fall into the highest tax bracket.

When would the new property tax surcharge begin?

Despite the committee’s approval, landowners will not have to face an increase in taxes immediately. The project to modify the tax regulations of the city of Barcelona is expected to go before an extraordinary council meeting for initial approval next week, followed by a final vote during the ordinary council session in December.

If approved, the surcharge would first become chargeable on December 31, 2027, and would be assessed annually. The date does not necessarily represent the deadline for payment.

The proposal is based on a Spanish government housing decree that allows municipalities classified as stressed residential markets to impose additional IBI charges on properties used for tourist accommodation.

That decree is also subject to parliamentary validation. The new fee is separate from the tourist tax which is paid on each night’s stay. It is an increase in the annual taxation of owners who let their dwellings for tourist purposes.

Why Barcelona is targeting tourist apartments ahead of 2028

The new tax is part of Barcelona’s campaign to reduce the number of private homes that are rented out in the short term to tourists.

The administration of Mayor Jaume Collboni has already announced that by 2028 the licenses of tourist apartments in the city will be abolished. The objective is to return these properties to the residential market.

The tax which is now proposed is not to supersede that measure, but to be considered as an additional measure to discourage tourist accommodation, while the existing concessions are in force.

In addition, the city has pursued other measures directed at the control of tourism, including amendments to the taxation of tourists, higher taxes on luxury hotels and increased fees on tourist buses and attractions.

For property owners and anyone considering investing in holiday rentals in Barcelona, the proposed surcharge adds another financial consideration to an already changing market.

The impact would vary considerably depending on the number of licensed tourist apartments owned. Someone renting out a single property would face a smaller increase than a business managing several apartments, although both would see their annual property tax costs rise if the measure is approved.

The changes could also influence decisions about the future use of these properties, particularly as Barcelona is already planning to phase out tourist apartment licences by 2028.

For now, owners do not need to pay any additional IBI under the new proposal. The surcharge still requires further approval, with a final council decision expected in December.

If adopted, the first charge would arise on December 31, 2027. Until then, owners should keep an eye on the approval process and consider how the proposed increases could affect their property’s running costs.

The coming months will therefore be important for anyone who owns, manages or is considering buying a holiday rental property in Barcelona.