The 20% Tax Rate on the Transfer Tax (ITP) for Large Property Holders in Catalonia

21 July, 2025
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Real Estate
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Amaia Forcada


On June 27, 2025, the reform approved by Decree-Law 5/2025 of March 25 came into force. This law adopts urgent measures in fiscal matters, personnel expenses, and other administrative areas. It was ratified by Resolution 201/XV of the Parliament of Catalonia and introduced a new 20% tax rate under the Property Transfer Tax (ITP) for the transfer of residential properties when the buyer is a large property holder, and also when an entire residential building is transferred to a natural or legal person.

In Catalonia, according to article 614-1.5 of book sixth of the Tax Code of Catalonia, a large property holder is considered to be:

1. Any natural or legal person who owns more than ten (10) residential-use properties, or residential-built surfaces exceeding 1,500 m² located in Catalonia; and
2. Any natural or legal person who owns five (5) or more homes located in the stressed residential market area, not including garages or storage rooms.

Therefore, starting from the end of June 2025, in Catalonia, any large property holder who acquires one or more residential units must pay the ITP at 20%, that is, much more than what they had been paying until now (10% or 11% depending on the value of the property), without prejudice to the reductions from which they could also benefit.

However, the definition of a large property holder is brief and does not address several common real estate situations, such as how co-owned properties are counted; whether the rule applies only to full ownership; or whether one’s primary residence should be included in the total of five properties.

In response to many queries from taxpayers and legal professionals, the Director General of Taxation and Gambling issued a resolution on June 27, 2025, coinciding with the reform’s entry into force, to clarify interpretive doubts about the concept of a large property holder and specify who is subject to the new 20% ITP tax rate.

Below is an analysis of the key points addressed in that resolution:

1.The definition of large property holder refers to ownership, whether full or bare

If you own the full rights to a property or just the bare ownership (nuda propiedad), the property will be counted toward determining your status as a large property holder.

On the other hand, if you only have an usufructo or a derecho de habitación over the property, it will not be included in the calculation.

2.Co-ownership does not count unless your share exceeds 1,500 m² of residential space

Properties held in co-ownership (e.g., inherited jointly with siblings) are not counted toward the large holder status.

The residential-use property that you have in co-ownership (for example, the one inherited from parents together with siblings) does not count for the purposes of being considered a large property holder.

However, if you co-own multiple properties, you must calculate the total residential square meters you own proportionally. If your share exceeds 1,500 m², you will be considered a large property holder.

If, in addition to residential units in co-ownership, you have the full or bare ownership of any others without reaching five, you must follow the rule described in the previous section, that is, you will only be considered a large property holder if, by adding the square meters of the residential units you have in full or bare ownership, plus the square meters of the residential units you have in co-ownership, you exceed 1,500 m² of residential use.

3.For individuals, the primary residence is excluded from the calculation

If you own a property that serves as your main residence (as defined in the Spanish Personal Income Tax regulations), plus four (4) additional residential units located in the stressed residential market area, you will not be considered a large property holder, because the primary residence is excluded.

The Director General justified this exclusion based on Article 47 of the Spanish Constitution, which recognizes the right to decent and adequate housing and obliges public authorities to ensure such access. They argue that this tax reform cannot contradict that constitutional right and thus, the primary residence must not be counted.

Moreover, an individual large holder acquiring a property will not pay the 20% ITP if the property is intended as their main residence. In that case, a reduced rate of 10%, 11%, 12%, or 13% will apply depending on the value of the property.

4.20% ITP for the transfer of a residential building to a natural or legal person

The 20% tax rate applies regardless of whether the building has been subdivided into individual units, as long as it contains at least two (2) residential units. It also applies regardless of whether the building includes non-residential spaces such as commercial premises, storage rooms, or garages.

However, the 20% rate only applies to the residential portion of the building and the proportional share of common areas, excluding the portion assigned to non-residential uses.

If the transfer of the building is carried out progressively, each partial transaction will be subject to a provisional self-assessment, which will be regularized in the final transaction. The final self-assessment will apply the 20% rate to the total value of the building, deducting the amounts already paid, plus applicable late interest.

If the buyer is an individual who acquires up to four (4) residential units intended for main residence (for themselves or family members up to second degree of kinship), the 20% rate does not apply. To qualify, each residence must be occupied as the main residence within 12 months of acquisition and remain so for at least three continuous years, unless changes are due to marriage, separation, stable partnership formation/dissolution, job relocation, first job opportunity, or similar causes.

5.20% ITP in the extinction of the usufructo

In cases where an usufructo ends (due to term expiration or death of the beneficiary), and ownership consolidates, the bare owner must file the corresponding ITP self-assessment.

This self-assessment must calculate the tax based on the value of the property at the time of consolidation and apply the then-current tax rate to the proportional share of the usufructo.

The 20% rate will only apply if the bare owner qualifies as a large property holder at the time of consolidation.

If he or she no longer meet the threshold, the 20% rate will not apply—even if he or she did qualify when the usufructo was originally created.

NOTICE: Although the Directorate General of Taxation and Gambling has clarified many interpretive doubts about the tax-related definition of a large property holder, this does not mean that its interpretation aligns with that of the Catalan Housing Agency (Agència de l’Habitatge de Catalunya), even though both bodies are part of the Generalitat of Catalonia.

The Housing Agency may choose to include primary residences in the count, or may treat co-owners as large holders regardless of whether their share exceeds 1,500 m².

Therefore, for other obligations—such as notifying the Catalan Housing Agency of the status as a large property holder—the criteria outlined by the Directorate may not apply.

It would be highly desirable for the Catalan Housing Agency to issue its own interpretive resolution to clarify these points, thereby increasing legal certainty in Catalonia’s real estate sector.

If you would like more information about the legal implications of being a large property holder in Catalonia, need help determining your status, or require tax advice for any transaction, feel free to contact us. At Mes Advocats, we’ll be happy to assist and advise you.

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Asesoramiento FiscalGran TenedorImpuesto sobre Transmisiones PatrimonialesPropiedad InmobiliariaReforma Fiscal Cataluña 2025

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