Owners of multiple residential properties in Spain could face a higher annual property tax bill if they leave homes empty for extended periods. Municipalities can impose a surcharge on the Impuesto sobre Bienes Inmuebles (IBI), Spain’s local property tax, when statutory and local conditions are met. The potential maximum of 150% is not a standard nationwide rate. It depends on the applicable rules, a municipal fiscal ordinance and a formal determination that the property is vacant.
Law 12/2023, of 24 May, on the Right to Housing introduced the authority, amending the Local Treasury Law and taking effect on 26 May 2023. The law gave municipalities the option to apply a surcharge. It did not automatically raise bills across Spain or penalize every owner of a second home. The measure aims to deter prolonged, unjustified vacancy and encourage homes to return to the rental or sales market.
A later measure, Royal Decree-Law 29/2026, was published in Spain’s Official State Gazette on 7 October 2026 and took effect on 8 October. Its fiscal effects are due to begin in 2027. The reform changes the potential surcharge in defined cases, with different thresholds for municipalities inside and outside officially designated stressed residential market areas. Municipalities still need to implement the relevant rules locally, making the original 2023 authorization and the later expansion distinct stages in the structure.
Who Faces the Surcharge?
Under the basic structure, a property generally must have been unoccupied for more than two years without a legally recognized justification to qualify. The rules focus on holders of at least four residential properties, but owning four homes alone does not trigger the charge. The municipality must adopt the measure and establish procedures to verify and formally declare a property vacant. A second home, inherited property or temporarily unused dwelling is not automatically liable. Depending on the applicable rules and evidence, circumstances such as work relocation, health-related absence and ongoing renovation may qualify as justifications.
Each local council decides whether to apply the surcharge, what rate to set within the statutory limits and how to verify vacancy. Alcoy, for example, has been reported as preparing a measure for owners with four or more homes who have at least two vacant properties in the municipality. The reported proposal sets a 50% surcharge after more than two years of vacancy and 100% after more than three years, with the possibility of reaching 150% in aggravated cases. Gijón, by contrast, has chosen not to increase IBI on homes vacant for more than two years, showing how local implementation can differ.
How High Can the Surcharge Go?
Under the staged structure described for the 2023 rules, a council may set a surcharge of up to 50% for qualifying properties vacant for more than two years. In specified circumstances, it can rise to 100% after more than three years. A further 50 percentage points may be possible in aggravated cases, including when the same owner has multiple vacant homes in one municipality. The 150% ceiling is a maximum potential surcharge, not an automatic increase for every qualifying owner. The precise conditions depend on the statutory rules and the municipality’s ordinance.
For example, if a property has a standard annual IBI bill of €600 and the maximum 150% surcharge applies, the surcharge would add €900, bringing the total to €1,500. The actual bill depends on the property’s IBI assessment and the rate adopted by the local council.
Exceptions and Valid Justifications
The rules recognize circumstances in which a home may not be treated as permanently vacant, including temporary absences related to work or study, health-related relocations and social emergencies. Renovations and legal disputes may also be relevant, as may second homes under the applicable rules. Owners need to establish the circumstances with evidence accepted by the relevant administration. The definition of justified vacancy is basic to any enforcement decision.
Homes listed for sale at market conditions for up to one year, or offered for rent for up to six months, are also among the situations described as exempt. If those periods are exceeded, owners may need to provide further justification to avoid a surcharge.
How Councils Prove Vacancy
Municipalities may use indicators such as the absence of registered residents or unusually low utility consumption to identify properties for review. Those indicators alone do not trigger the surcharge. The council must follow its formal procedure, notify the owner and give them an chance to submit evidence before declaring a property vacant. Under the process described in the rules, the surcharge is assessed as of 31 December and charged only after the vacancy has been officially confirmed.
Spain’s 2021 Population and Housing Census counted 3,837,328 vacant dwellings, or 14.4% of the country’s 26,623,708 homes, information from the National Statistics Institute. That figure provides context for the housing debate, but it is not the number of homes eligible for an IBI surcharge. Legal eligibility also depends on vacancy duration, ownership, justifications, municipal rules and a formal administrative determination.
For property owners, the structure adds another consideration when managing a real-estate portfolio, while councils retain large discretion over whether and how to use it. The annual impact varies by municipality and by the property’s existing IBI assessment. For more on other fiscal measures affecting Spanish households, a recent analysis examines the average minimum living income, which now exceeds €500 per household, and additional support for families with children. More details are available in this report on Spain's minimum living income program.
