Achieving vacant possession: A game changer for property owners
The recent government vote on 23 January 2025 has marked a significant shift in Spain’s property market regulations. With the vote’s failure, property owners now have enhanced legal rights to remove tenants who haven’t paid rent or are occupying properties illegally. This development not only helps in regaining vacant possession but also removes the burden of compensating authorities for rehousing vulnerable individuals. Moreover, it is now permitted for owners to cut off water and electricity supplies to illegally occupied properties, reinforcing their ability to regain full control over their assets.
Loss of tax benefits on eco-improvements: A setback for sustainability
While the ruling has provided property owners with greater control over their properties, it comes at a cost. The same decision has halted the extension of tax benefits aimed at improving the energy and CO₂ grading of properties. These eco-friendly incentives were crucial for homeowners and investors looking to modernise properties, reduce emissions, and ultimately enhance property values through sustainable improvements. With the tax benefits no longer available, the financial appeal of investing in eco upgrades diminishes, potentially affecting long-term property valuations.
The broader impact on property valuation and investments
As registered valuers, Survey Spain continuously monitors changes that impact property ownership and investments. In the current landscape, every regulatory shift—from tenant removal rights to eco tax benefits—plays a vital role in determining market values. On one hand, the ability to achieve vacant possession more efficiently can lead to higher property valuations, as properties become more attractive investments with reduced risks of prolonged tenancy disputes. On the other hand, the cessation of eco tax benefits may dampen the enthusiasm for sustainable property improvements, potentially impacting the future market value of properties that rely on these enhancements.
For a comprehensive evaluation of how these changes affect your property investment strategy, rely on the expertise of Survey Spain—your trusted partner in property valuation.
