When buying a house, there are taxes that have to be paid, including IMT and Stamp Tax (IS). This is a financial burden that young people up to the age of 35 will no longer have to bear from August, as soon as the new Government measure that exempts the payment of IMT and IS in these transactions comes into force. However, in 2023, both wealth taxes generated less revenue, according to the most recent data from the Tax Authority (AT).

“In 2023, the Municipal Tax on Onerous Property Transfers (IMT) corresponded to 1,751 million euros, a decrease of 0.7% compared to the previous year”, reveals the Tax Authority. But even so, IMT revenue transferred to municipalities grew by around 1.1% compared to 2022, to 1,675 million euros.

“Regarding the number of IMT collection notes issued in 2023, which amounted to approximately 288 thousand, there was a decrease of 10%, compared to 2022”, adds the AT.

With regard to Stamp Tax, “the revenue relating to the funds for the acquisition of real estate stands out negatively, with a decrease of 10% compared to the same period last year”, the Tax Authority also states in another note. Specifically, around 330 million euros in IS were collected last year for the purchase of houses and other properties. On the other hand, the IS charged on leasing and subleasing in 2023 totalled 19.8 million euros, 20.4% more than in the previous year.

With the new Government measure that provides for the exemption from IMT and IS on the purchase of a home by young people up to the age of 35, municipalities should experience a drop in revenue from these taxes. However, the Executive has already guaranteed that local authorities will be “fully compensated” for the loss of IMT revenue.