Restoring ITP bonuses and promoting buy to let benefits: key to improving housing supply.

The recent increase of the Property Transfer Tax (ITP) to 20% for large holders is having a significant impact on the renovation of rental housing in Catalonia.

The elimination of the 70% bonus for renovations reduces financial incentives to upgrade properties and put them up for rent, just when the renewal and energy efficiency of the residential stock are more necessary than ever.

In an article by Expansión published on December 14, titled “The real estate sector demands Illa to restore renovation bonuses” and signed by David Casals, our partner Carlos Muñoz, real estate law specialist, together with Adrià Redondo, delegate in Catalonia of the Spanish Association of Tax Advisors (Acdaf), and Helena Beunza, president of the Association of Rental Housing Owners (Asval), provide their insight on this measure and its consequences for the sector.

The ITP increase has directly affected incentives to carry out renovations, making it more difficult to modernize the housing stock and bring new housing to the rental market. According to experts, the lack of fiscal stimuli could slow down property renovation and limit the energy efficiency of existing buildings.

Sector proposals

To promote renovation and boost the rental market, experts agree on the need to:

• Restore the bonuses for renovated rental properties.
• Establish additional incentives based on improvements in the energy rating of renovations.
• Facilitate a more modern, efficient, and sustainable residential stock.

Renovating homes represents a strategic opportunity to improve energy efficiency, stimulate the real estate market, and increase the supply of quality rental housing. Recovering and redesigning ITP bonuses, linking them to verifiable energy improvements, is an effective measure to activate this potential.

Additionally, introducing tax benefits for property purchases intended for rental (buy to let) can significantly increase supply, helping to alleviate the housing crisis we are experiencing.

To delve into all the details of the news and read the full opinions of the experts, we invite you to read the original article in Expansión: https://www.expansion.com/catalunya/2025/12/14/693f10bf468aeb57528b4579.html

We thank David Casals and Expansión for trusting the professionals at CIM to provide a rigorous analysis on this key issue for the real estate sector.