Property
S pr pa o in in per ’s b En ty es gl ma t ish g
www.theolivepress.es
SILVER LINING INSIDE: The fabulously ornate architecture that took its inspiration from tableware
MARCH MAY 2025
GREEN DESIGN THESE pictures show off some of the eye-catching eco-projects in Spain’s pavilion at the 19th Venice Architecture Biennale. Dubbed Internalities: Architectures for Territorial Equilibrium, the Spanish Pavilion is all about saving the planet - brick by brick. Curated by architects Roi Salgueiro and Manuel Bouzas, the show takes aim at construction’s dirty secrets - pollution, waste, and vanishing local skills - and flips the script. Instead of hauling in materials from across the globe, the exhibition champions homegrown, low-impact solutions. Sixteen standout projects from all over Spain take centre stage, each built using smart, sustainable techniques - think wood from Cantabria, earth walls from Catalunya, and emissions-cutting hacks from the Balearics. Five themed zones - Materials, Energy, Labour, Waste, and Emissions - drive the message home.
HOMEBUYERS in Spain are being completely ripped off when it comes to property taxes. Purchasers pay a shocking third of a property’s purchase on extra costs by far the highest in Europe. According to a report by the Institute of Economic Studies (IEE), they pay an effective tax rate of 30.3% when purchasing a home. This is almost five times the European average of 6.5% and second only to Canada across the OECD western world nations. Up to a quarter of the home’s final price is attributed to taxes alone, while further costs go in conveyancing and agent’s fees.
GREEN REBUILD: Local materials were used to bring this ruined barn back from the dead in a sustainable way
Tax bombshell By Tom Ewart Smith
IEE President Iñigo Fernandez de Mesa called the situation ‘surprising’, noting that housing - a basic necessity - is ‘so severely penalised’. The think tank warns the heavy tax load is widening the gap between supply and demand and making it increasingly difficult for Spaniards to
Homebuyers in Spain face ‘highest tax burden in Europe’ with a third of property purchases not on bricks and mortar access affordable housing. But it is unlikely the government will want to change things with Spain’s housing-related taxes generating around €52.2 billion annually, or 3.5% of the country’s GDP.
Property Tax (IBI) makes up nearly 30% of the total, followed by VAT and income tax. The Property Transfer Tax (ITP) stands at 11%, among the highest in Europe, while capital gains tax on
sales can reach 30% - almost double the EU average. Regional disparities are stark, however, with the Balearic Islands levy up to 13% ITP on new builds, compared to 6% in Madrid. The IEE lauds Madrid’s approach as a model of fiscal competitiveness. The think tank also warns Spain needs 2.2 million new homes by 2040, requiring €380 billion in investment - far beyond the public sector’s reach. It is urging sweeping tax reforms, including cuts to transaction and property taxes, incentives for landlords, and a reduced VAT rate on renovations to ease the housing squeeze.