In Spain, it has long been part of the cultural fabric for adult children to remain in the parental home after coming of age. However, in recent years, the country’s tax authorities have begun to view this family model from a new perspective. If an adult son or daughter lives with their parents without an official rental agreement and without paying even symbolic rent, the state may consider this a form of undeclared income. As a result, parents or the adult children themselves could face an additional tax burden.
The essence of the new measures is simple: if an adult family member uses housing free of charge, the tax service interprets this as a benefit comparable to rental income. The amount of tax is calculated based on the market value of renting a similar property and the length of stay. Age of the resident, employment status, and even family circumstances are taken into account. Authorities emphasize that the goal is not to penalize families, but to ensure equal tax conditions for everyone.
European context
The phenomenon of adult children living with their parents is not unique to Spain. On average across Europe, nearly half of young people aged 17 to 34 continue to live at home. In Sweden, young people start living independently early—at 17 years old, while in Denmark and Finland it’s around 21, and in Germany, about 24. In Southern European countries like Spain, Italy, and Greece, young people leave the parental home much later—often only by the age of 30. In Spain, this trend is especially notable: up to 80% of young adults stay with their parents until they turn thirty.
There are multiple layers behind this trend. On the one hand, it’s shaped by tradition and family values; on the other, by economic realities. The cost of renting accommodation in major Spanish cities has surged in recent years, making independent living virtually unattainable for many young people. Even those who are employed often find housing expenses overwhelming, especially at the start of their careers.
Tax nuances
The introduction of a tax on free accommodation has sparked intense debate in Spanish society. Many families now face a choice: either formalize a rental agreement with their own children or take the risk and hope the tax authorities overlook their situation. However, officials clarify that the tax does not apply to students enrolled in full-time education or to those who continue to receive benefits. In such cases, cohabitation is not considered income, and no tax obligations arise.
Other European countries take different approaches to taxation. For example, in the UK, an adult child living with one parent can cause the parent to lose a 25% discount on municipal tax. However, if the child is studying or undergoing an internship, the benefit remains. In Spain, the emphasis is placed specifically on the financial independence of adult family members.
Social and psychological aspects
Debate over the new tax regulations has inevitably touched on the topic of independence among today’s youth. Many experts point out that infantilism levels among young people in Europe and Russia are indeed high. Still, attributing this solely to reluctance to leave the parental home would be a mistake. Often, the underlying cause is economic hardship, not a lack of motivation or life skills.
Psychologists emphasize that if an adult child is studying, working, or just starting a career, living with parents is not a sign of immaturity, but a forced measure. In a situation where renting a home has become a luxury, many families prefer to support each other rather than break ties just to formally meet society’s or the state’s expectations.
The state and private life
State intervention in family relationships provokes mixed reactions. On one hand, tax authorities aim to close loopholes for tax evasion and ensure fairness. On the other, many believe such measures intrude too deeply into citizens’ private lives. The question of where the line lies between caring for the budget and respecting personal space remains open.
In Spain, the debate over taxing the cohabitation of adult children with their parents reflects a broader problem: how the state should respond to changing social and economic realities. While some see the new rules as a way to encourage young people’s independence, others view them as an attempt to shift financial burdens onto ordinary families.
