The Directorate General for Taxes and Gambling of the Government of Catalonia (hereinafter DGT Cat) has clarified the tax treatment of real estate acquisitions carried out by so-called “large holders”, publishing sixteen tax rulings.

A large holder is considered to be an individual or legal entity that owns more than ten residential properties or a built residential surface area exceeding 1,500 m² in Catalonia, as well as anyone who owns five or more residential properties located in areas of stressed residential markets. Garages and storage rooms are not included in this calculation and, solely for tax purposes —which differs from civil regulation—, in the case of individuals, their main residence is also not counted.

On this basis, the Sixth Book of the Catalan Tax Code and, subsequently, Resolution 3/2025 of the Government of Catalonia provide for the application of an increased rate of 20% in the Transfer Tax on Onerous Transactions —TPO— in certain acquisitions of dwellings and residential buildings. This regime has been clarified and further developed by the DGT Cat through the publication of sixteen tax rulings.

Below is a summary of some of the criteria that have helped clarify and refine issues that were previously unclear or not expressly regulated:

Firstly, the DGT Cat has repeatedly stated that the status of large holder must be assessed on the date the tax becomes due, that is, at the time of acquisition of the property or building. Consequently, if at that moment the buyer does not meet the requirements to be considered a large holder, the increased rate will not apply, regardless of whether the thresholds are exceeded afterwards. In practical terms, when a taxpayer purchases the fifth property, they will not be considered a large holder for the purposes of that purchase, and it will only be from that moment onwards that they will qualify as such. Therefore, the 20% rate would apply starting from the sixth purchase.

It is confirmed that the status of large holder is determined exclusively by the assets of the owner, without adding the properties owned by companies to their shareholders. Likewise, when the criterion is based on surface area, the square metres are obtained from the Cadastre and only those used for residential purposes are counted.

Furthermore, if the seller is subject to VAT and waives the exemption, the transaction is not subject to TPO but instead to VAT + Stamp Duty (AJD) at 3.5% (relevant new development), even if the purchaser is a large holder.

Regarding the concept of dwelling, the DGT Cat states that it includes the main apartment, two parking spaces and a storage room, provided that the latter (the annexes) are linked to the property and not transferred to a third party. In other words, if the annexes are rented or transferred at the time of the transaction, they fall outside the increased rate, which will then apply only to the main dwelling.

The lack of a certificate of habitability does not automatically exclude the classification as a residential dwelling, unless it has been expressly denied. In this regard, what determines the residential classification is not the actual use given to the property, but rather its registration and cadastral classification.

Regarding the transfer of entire residential buildings, the DGT Cat clarifies that the 20% rate only applies when the acquisition is carried out by a single individual or legal entity and, in addition, only with respect to the part of the property intended for residential use. Elements with other uses within the building (commercial premises, garages, offices, etc.) are excluded from the increased rate. In this regard, joint purchases in co-ownership by more than one buyer are excluded from the 20% rate.

Each dwelling must be counted individually, even if there is no horizontal division of the building and, in cases of successive acquisitions, a regularisation (at 20%) must be carried out when the entire building is ultimately acquired, with a statute of limitations period of four years.

The DGT Cat clarifies that, even if several properties are acquired in a single deed, TPO must be calculated for each asset independently, as there are different taxable events, even in cases of “ob rem” linkage, unless the Administration considers that there is a single economic unit.

In light of the above, although these rulings define more precisely the scope of the increased 20% rate, some issues remain unresolved and, above all, they highlight that real estate acquisitions often require a prior analysis of each transaction in order to avoid tax contingencies and additional costs.