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The real estate market in Spain continues its dynamism, with a clear upward trend in purchase and rental prices, and a constant adaptation of the tax framework. For owners, investors, and prospective buyers, staying up-to-date with tax developments is crucial to optimising their operations and avoiding surprises. At Asif Grup, with over 17 years of experience, we guide you through the most relevant changes for 2025 and 2026.
The Current Real Estate Market Context and its Tax Implications
Over the last few months and early 2026, we have observed a significant increase in property prices, reaching new historic highs. This growth, driven by both new builds and second-hand properties, directly impacts the taxation of buying and selling operations, especially regarding capital gains.
In parallel, the rental market is also experiencing a notable increase in rents and a shortage of supply. While favourable for landlords, this situation also entails the need to understand the tax implications of rental income and any applicable deductions.
"In such a changing market, up-to-date tax information is the most valuable asset for any real estate decision."
Key IRPF Updates for 2025-2026
The Personal Income Tax (IRPF) introduces important adaptations that will affect many taxpayers with real estate properties.
Imputation of Property Income: A Significant Change
One of the most notable modifications, effective from 1 January 2025, concerns the imputation of 1.1% of the cadastral value in the IRPF for properties that are not a main residence and are not rented out. This measure will only apply to properties located in municipalities whose cadastral values have been reviewed or modified from 1 January 2012 onwards. This change could mean a significant difference in the taxable base for many owners, so it is crucial to verify the status of your property.
Energy Efficiency Deductions: Invest and Save
Energy efficiency remains a priority, and tax regulations reflect this with incentives. The 20% deduction in IRPF for improvement works that contribute to reducing heating and cooling demand in the main residence is maintained and enhanced. These works can range from window replacement to insulation improvements, offering an excellent opportunity to revalue your property and, at the same time, benefit fiscally.
Boosting Housing and Renovation: State Plan 2026-2030
The new State Housing Plan 2026-2030, approved in April 2026, is an ambitious initiative that will mobilise a significant amount of resources to facilitate access to housing and promote renovation.
Grants for Young People and Rent
This plan includes specific measures for vulnerable groups and young people. For example, individuals under 35 in municipalities with fewer than 10,000 inhabitants can apply for grants of up to 15,000 euros for property acquisition, with a limit of 20% of the cost. Additionally, general rental assistance of up to 250 euros per month is contemplated for households with limited incomes, and ICO guarantees have been extended to facilitate property purchases for young people and families with dependent children, covering up to 80% of the valuation or sale price.
Incentives for Energy Renovation
In line with the European energy efficiency strategy, the State Housing Plan also allocates significant resources to renovation. Grants of up to 20,500 euros per property are offered for works that improve its energy efficiency, representing a great opportunity for owners who wish to modernise their properties, reduce their consumption, and increase their market value.
Tax Tips for Owners and Future Buyers
- Stay informed: Property taxation is a constantly evolving field. Periodically review regulatory updates.
- Document all operations: Keep invoices and proofs of works, purchases, or sales, as they will be essential for potential deductions or capital gains calculations.
- Review the energy performance certificate: With the new grants and deductions, having a good energy performance certificate is not only mandatory but can also be a source of tax savings.
- Consult a professional: Given the complexity of tax regulations, especially with constant updates, it is highly recommended to seek advice from a tax or real estate expert. At Asif Grup, we can guide you on how these developments directly affect you.
Understanding the current tax landscape is essential for making informed decisions in the real estate sector. The updates for 2025 and 2026 offer both challenges and opportunities to optimise your situation. Do not hesitate to seek professional advice to adapt your strategy to these changes.
Frequently asked questions
It is a percentage (usually 1.1% of the cadastral value) that is imputed as income in the IRPF for having a second property or real estate at your disposal that is neither your main residence nor rented out. From 2025, it only applies if the cadastral values of the municipality were revised from 1 January 2012 onwards.