The Basque Parliament has rejected an initiative by Sumar that urged the regional Government to implement tax surcharges with the aim of "discouraging the speculative accumulation of housing".
The motion did not move forward in the Plenary session of the Chamber, gathering 71 votes against versus the sole vote in favor by Sumar's representative.
The proposal sought to introduce a progressive surcharge on the Tax on Transfer of Property and Documented Legal Acts, applicable to home purchases made by large holders with more than five properties.
It also called on the Basque Executive to, within a maximum period of six months, register the corresponding draft law to create these surcharges, "ensuring their compatibility with the tax regime derived from the Economic Agreement and that their configuration does not entail a reduction in the corresponding revenue for the Historical Territories".
Review of housing taxation
Nor has the amendment from EH Bildu prospered, which urged the provincial councils to "review" the related local tax regulations for housing "to reduce social and economic inequality, correct the regressive nature of the current tax system, and eliminate any incentive that promotes profiteering from renting through housing".
Among other measures, it required the provincial executives to remove the special regime of the Corporate Tax "that allows large housing holders, investment funds, and housing rental companies to keep 90% of their profits out of taxation".
EH Bildu also demanded that the provincial councils "increase exponentially" the rates of the tax on transfer of property based on the volume of housing and the profile of the buyer, with an initial rate of 8% for those who own three homes, which would rise to 20% for investment funds, financial entities, and asset-management companies in the real estate sector, maintaining in all cases the minimum rate for those who do not have housing.
Furthermore, the coalition proposed adapting the Wealth Tax "to bring the value of the declared assets closer to their market value, as is done in Navarra". According to EH Bildu, in this way "the reduction in taxation that results from valuing the assets of large owners below their actual value is avoided, and it is ensured that those with greater wealth contribute according to their wealth".
On the other hand, the amendment submitted jointly by PNV and PSE-EE has been approved with the 37 votes of both parties and the rejection of the other 35 parliamentarians.
Through this text, the Basque Parliament recognizes "the active role that the provincial treasuries are playing as competent institutions in tax matters, in the search for solutions to the housing challenge by promoting the appropriate tax measures".
The Chamber also considers it necessary "to continue moving forward in the adoption of tax measures that help to facilitate access to housing, to encourage affordable renting, the entry into the market of unoccupied dwellings, the protection of small property owners, the promotion of rehabilitation, attention to the situation of older people, to promote a 'balanced and socially responsible' use of the residential stock, to help 'discourage speculative dynamics in the market'.