Sumar proposes a 25% tax on the resale of homes purchased less than two years prior

Congress Proposal: A New Tax to Curb Real Estate ‘Flipping’

Alberto Ibáñez, a member of Compromís (part of Sumar), has submitted a non-legislative proposal to the Spanish Congress aimed at tackling one of the most controversial practices in the housing market: property flipping — buying homes to resell them quickly for fast profit.

The proposal introduces a 25% tax on the sale price of any property sold within two years of its original purchase. The intention is straightforward: discourage speculative operations that, according to Ibáñez, are pushing housing prices upward and making homeownership increasingly difficult for most people.

Are there any exceptions?

Yes. The text includes exemptions for those who need to sell their home within two years due to:

• Accessibility needs
• Illness
• Changes in family structure or household composition

In other words, situations where the sale is driven by genuine necessity, not speculation.

Why the push to limit flipping?

According to Ibáñez, this type of rapid turnover artificially inflates property prices and “disconnects housing from its social purpose.” Frequently, investors buy large volumes of distressed properties, carry out minimal improvements, and relist them at significantly higher prices.

The objective is to reduce the use of housing as a purely financial asset and prevent the hoarding of properties — trends that various reports point to as major drivers of rising home prices.

A model already in place elsewhere

Ibáñez notes that similar measures are already being applied abroad. In British Columbia (Canada), for example, a specific tax is levied on properties resold within two years to curb speculation and stabilize the housing market.