British homeowners with multiple properties in Spain could face a 100% surcharge on their annual property tax if they leave a home empty for more than three years, as Spanish town halls gain new powers to increase the tax bills of certain empty homes in the country's push to tackle its housing shortage. Here is what the rules actually say — and who is exempt.
How the surcharge works
The charge applies to Spain's annual property tax, known as IBI, rather than being a new tax on the value of a home. Councils can impose a surcharge of up to 50% when a qualifying residential property has been continuously empty for more than two years without a justified reason. If the property remains empty for more than three years, the surcharge can rise to 100%.
Who is actually affected
The rules generally apply to properties belonging to owners with four or more residential properties. A Briton who owns just one holiday home in Spain would not automatically face having their IBI bill doubled under this provision.
The surcharge is also not imposed automatically across Spain. Local councils have the power to introduce it when the conditions set out in the legislation are met.
Important exemptions
The legislation recognises several justified reasons that can protect second-home owners:
1. Use as a second home — recognised for up to four continuous years of remaining empty.
2. Renovation or rehabilitation — properties undergoing works are exempt.
3. For sale — homes being offered for sale are exempt for up to one year.
4. For rent — properties being offered for rent qualify for an exemption of up to six months.
5. Temporary moves for work or education, and some health-related circumstances, are also recognised.
This means a British-owned holiday home that is unused for long periods will not automatically face the higher charge.
Why Spain is doing this
The measures form part of Spain's efforts to tackle a housing shortage that has become particularly acute in popular cities and tourist destinations. Spanish authorities have been looking for ways to encourage more homes back onto the residential market as residents struggle with rising housing costs and limited supply.
What it means for British owners
For British owners, the impact will depend on how many residential properties they own, how long the Spanish property has been empty, why it is unoccupied, and whether the local council applies the surcharge. Owners of multiple properties that sit unoccupied for years without a justified reason face the biggest exposure — while typical holiday homeowners with documented occupancy or genuine reasons are largely protected.
Source: Express.co.uk — "Major warning as British expats face huge tax penalty for empty homes in Spain" (Daily Express / Express.co.uk, UK). The original article and image are © Express.co.uk.
