TAX MEASURES IN CATALONIA 2025
- Isabel Saló
- Apr 15
- 4 min read
Catalonia has begun 2025 with a wide-ranging tax reform introduced by Decree Law 5/2025, of March 25, which adopts urgent measures on tax matters, personnel expenses, and other administrative issues.
These measures mainly focus on primary residence, protection for vulnerable groups, and progressive taxation, especially affecting Personal Income Tax, Transfer Tax and Stamp Duty, and Inheritance and Gift Tax.
Personal Income Tax
Effective January 1, 2025, the following changes apply:
New regional tax rates
A new income bracket is introduced to enhance the tax’s progressivity, adjusting rates accordingly:
Taxable net income up to (€) | Payable tax (€) | Remaining taxable net income up to (€) | Tax rate (%) |
0,00 | 0,00 | 12.500,00 | 9,5 |
12.500,00 | 1.187,50 | 9.500,00 | 12,50 |
22.000,00 | 2.375,00 | 11.000,00 | 16,00 |
33.000,00 | 4.135,00 | 20.000,00 | 19,00 |
53.000,00 | 7.935,00 | 37.000,00 | 21,50 |
90.000,00 | 15.890,00 | 30.000,00 | 23,50 |
120.000,00 | 22.940,00 | 55.000,00 | 24,50 |
175.000,00 | 36.415,00 | en adelante | 25,50 |
Family and social deductions:
Several deductions are extended and adjusted:
1. Birth, adoption and foster care: now includes temporary and permanent foster care.
2. Renting of primary residence:
The income thresholds that cannot be exceeded by the taxpayer in order to apply it are increased from 20,000 to 30,000 euros.
The deductible amount is increased to 500 euros per year (previously 300 euros). In the case of large families or single-parent families, the amount is up to 1,000 euros.
The age for applying the deduction is extended from 32 to 35 years.
The requirement for the amount of rent to exceed 10% of income has been eliminated
3. Renting of the primary residence of victims of gender violence: This is a new feature for taxpayers who can prove that they are victims of gender violence, and they can apply a deduction of up to 1,000 euros per rental, which is increased to 1,200 euros in cases of disability equal to or greater than 65% or for those who have dependent minor children.
Deduction for investments in the social economy
A deduction of 20% is introduced for contributions to agricultural and housing cooperatives, with a limit of 3,000 euros per year, provided that certain requirements are met.
Transfer Tax
From 27 June 2025, the following changes will come into force:
New tax rates
1. A progressive rate is introduced for the purchase of real estate and the creation and transfer of rights in rem over real estate:
Total value of the property up to (€) | Payable tax (€) | Remaining value up to (€) | Tax rate (%) |
0,00 | 0,00 | 600.000,00 | 10 |
600.000,00 | 60.000,00 | 300.000,00 | 11 |
900.000,00 | 93.000,00 | 1.500.000,00 | 12 |
1.500.000,00 | 165.000,00 | en adelante | 13 |
2. A new tax rate of 0% is introduced for ‘zero emission’ vehicles.
3. An aggravated tax rate of 20% is introduced for those purchasers who are considered to be large holders, as well as for transfers of entire residential buildings, even if the transfers are progressive over time, with certain exceptions.
Social incentives
Regarding the 5 % reduction for the purchase of a primary residence, it applies to:
1. Young people up to the age of 35 (previously 32 years)
2. The purchase of a primary residence by victims of gender violence with an income of less than 36,000 euros. In order to apply the reduction, certain conditions must be met.
Tax rebate
The following new features are introduced, provided that the requirements are met:
1. 100% tax relief for:
Transfer of art works of art and antiques for professional resale.
Non-profit housing cooperatives.
2. 50% tax relief for transmissions of office buildings to be converted into subsidised housing or company headquarters that meet certain requirements.
Stamp Duty
Tax rate
The standard tax rate is increased to 3.5% (previously 2.5%) for transactions where the VAT exemption is waived.
Tax rebate
New allowances have been introduced:
100 % for the purchase of a primary residence by young people up to 35 years of age with an income of less than 36,000 euros.
50% for deeds relating to the transformation of properties into subsidised housing or which are to be used as company headquarters or business workplaces.
75% in the constitution of horizontal property for plots of land in industrial estates (until 31/12/2027).
The above modifications shall apply with effect from 27 June 2025.
Inheritance and Gift Tax
Reductions in the taxable base:
With effect from 27 June 2025, the following new features are introduced:
For the donation of money, the deadline for acquiring the property after receiving the donation is extended to 6 months (previously 3 months).
A reduction is introduced for the donation of a home that is to constitute the primary residence, or the donation of money to acquire it, in favour of victims of gender violence, provided that certain requirements are met. The rules for applying it are as follows:
It is applicable to donations to ascendants, descendants and collateral relatives of the 2nd degree who are victims of gender violence.
It also applies if the donation is of land or money to buy land and build the house.
The reduction is 95% of the amount donated, with a limit of 100,000 euros, extendable to 200,000 euros if there is a disability equal to or greater than 65% or dependent minor children.
Tax rebate regarding inheritances in cases of gender violence:
If the deceased person is a victim of gender violence and dies as a result of this violence, their ascendants and descendants by blood can apply a 99% allowance on the tax, including life insurance.
If you would like to obtain further information, please do not hesitate to contact us.
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