The Tax Agency reveals that taxpayers pay €4.457 billion for vacant homes. The number of empty properties has risen to 4.91 million, 1% more than in 2023.
Spaniards with a vacant home are now paying €4.457 billion in income tax for that property, according to the 2024 statistics on homes declared in income tax published by the Tax Agency. This figure represents a slight increase of 1.18% compared to the previous year, when the tax office began compiling these statistics.
In total, there are 4.91 million homes in Spain that are vacant all year or for periods of the year, 50,050 more than in 2023. Of the 18.37 million registered properties, 10.69 million are primary residences and 2.65 million are rented.
How is the tax on vacant homes calculated?
Owners are required to pay tax on the possession of an unoccupied property. The calculation is based on the cadastral value and applies a rate of 1.1% if that value has been revised after 2012, or 2% if it has not been updated. This tax is known as imputed income.
However, the €4.457 billion declared is not what the tax office actually collects, as taxpayers can reduce their tax bill with deductions or refunds for withholdings on their salary. Nevertheless, the tax authority has focused on real estate activity to ensure that both rental income and imputed income from vacant homes are declared.
Regions with the most vacant homes and highest tax costs
Madrid tops the list of autonomous communities with the most vacant properties, with 839,747, followed by Andalusia (833,183), Catalonia (685,134), and the Valencian Community (635,915). These four regions account for nearly 61% of the country's vacant homes.
However, the taxpayers who pay the most for owning an unused home are those in the Balearic Islands, with an average of €1,082 annually on their income tax return. They are followed by residents of Madrid (€1,077), Cantabria (€1,042), and Catalonia (€997). The national average stands at €858.8 per owner, a 3% increase from the previous year due to updates in cadastral values.
The tax cost depends on the location, square meters, and age of the property, which explains the differences between regions. For an average owner in the Balearic Islands, the tax burden is 26% higher than the national average.
Rent: gross income of €22.609 billion
On the flip side, rental income continues to rise. Taxpayers declared €22.609 billion in gross income in 2024 from rentals, an 11% increase from the previous year, driven by rising prices. After deducting expenses (community fees, mortgage, insurance, renovations) and applying reductions for renting as a primary residence (from 50% to 90% in high-demand areas), net income stands at €7.215 billion.
Catalonia is the community with the most rental homes (538,661, 21% of the total), followed by Madrid (503,389), Andalusia (279,447), and the Valencian Community (279,995). The highest rental income is collected by owners in the Balearic Islands, averaging €10,976 annually, followed by those in Madrid (€10,478) and Catalonia (€10,101).
These earnings are added to the taxpayer's other income (salaries, deposit rents) and are taxed at the marginal income tax rate. For an average owner, rental income can represent a significant supplement, but also a higher tax burden.
In summary, the tax office's statistics reflect a housing stock with 4.91 million vacant properties generating a billion-euro tax bill, while rental income remains a booming business, with record earnings but also increasing taxation. Owners should review their tax return to avoid errors, especially if they have unoccupied or rented properties.
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