Barcelona Proposes 150% Property Tax Surcharge on Tourist Flats

Barcelona City Council has taken a significant step toward curbing the proliferation of short-term tourist rentals by provisionally approving a property tax (IBI) surcharge of up to 150% for owners of tourist flats. This measure, which received support from several political groups, is designed to address housing accessibility issues and discourage the conversion of residential properties into tourist accommodation. The surcharge is tiered based on the number of licenses held: owners with one license face a 50% surcharge, while those with four or more will be subject to a 150% increase.

This policy aligns with broader efforts by the city to phase out tourist flat licenses entirely by 2028. The surcharge is expected to receive final approval during the December plenary session. If enacted, the tax will become payable starting December 31, 2027, and will be applied annually thereafter. This move is part of a wider trend in European cities where local governments are increasingly using fiscal policy to manage the impact of tourism on local housing markets and resident quality of life.

Owners of approximately 10,600 tourist flats in Barcelona are directly impacted by this tax hike. Travellers who rely on short-term apartment rentals for their accommodation in the city will likely face reduced inventory and potentially higher nightly rates as property owners pass on the increased tax costs.

Makutet anticipates that this aggressive fiscal policy will lead to a significant contraction in the short-term rental market in Barcelona, effectively forcing a shift back toward traditional hotel and hostel sectors. We expect other major European tourist hubs facing similar housing crises to monitor the success of this surcharge closely, potentially adopting similar punitive tax models to regain control over their urban residential landscapes.