Advantages in Purchase and Rehabilitation of Rural Housing in Catalonia
Today we explain Law 8/2025 of the Statute of Rural Municipalities and its corresponding tax developments in the purchase and sale of properties in Catalonia.
I. Introduction and legislative novelty
The Law 8/2025, of 30 July, on the Statute of Rural Municipalities of Catalonia, constitutes a milestone in the territorial cohesion policy of our country. Its purpose is twofold: to revitalise the rural world and curb depopulation, through its own regulatory framework, new financing formulas and a set of far-reaching tax incentives.
The starting point is clear: more than 60% of Catalan municipalities have fewer than 2,000 inhabitants, which translates into difficulties in guaranteeing basic services and attracting or retaining a stable population. Aware of this, the Generalitat has designed a specific statute for rural municipalities, which combines institutional support, administrative simplification and — above all — a favourable tax regime for those who decide to move, invest or rehabilitate housing in these localities.
The great novelty of this law is not only the creation of the legal category of “rural municipality” and “rural municipality of special attention”, but the recognition of a distinct status, with differentiated rights and obligations. This new framework translates into:
- Strengthened financing mechanisms, through specific funds for rural municipalities.
- Regulatory and administrative simplification, adapted to the reality of town halls with very limited technical resources.
- Guarantee of basic services in essential areas such as education, health, housing and transport.
- And, notably, a package of tax benefits aimed at encouraging population retention, attracting investment and facilitating the rehabilitation of the housing stock in these areas.
In this way, the regulation goes beyond mere competential regulation: it acts as a fiscal and legal lever to rebalance the territory. And it is here that Title V, Chapters I and II (arts. 57 et seq.), plays a leading role, by introducing reductions and discounts in the Personal Income Tax and the Tax on Property Transfers and Documented Legal Acts (ITP-AJD), as well as notarial discounts, with immediate effects in the daily practice of sales, rehabilitations and real estate transactions.
II. Incentives in the IRPF: articles 57 to 61
Law 8/2025 does not merely amend the ITP-AJD, but completes the tax reform with a set of deductions in the regional IRPF, all linked to housing and applicable exclusively in rural municipalities. The objective is clear: to make it fiscally attractive to move residence, acquire, renovate or rent housing in these localities.
1. Deduction for transfer of habitual residence (art. 57)
For those who decide to establish their residence in a rural municipality, a fixed deduction is established:
- €750 per year, or €1,500 in single-parent families.
- €1,000 per year, or €2,000 in single-parent families, if the move is to a rural municipality of special attention.
Main requirements:
- Age between 18 and 35 years, or having school-aged children in the municipality (up to 16 years old).
- Income limit: €30,000 for individual taxation or €45,000 for joint taxation.
- Applicable only to the first move to a rural municipality.
This measure is designed to promote the mobility of young people and families with children, ensuring not only the initial move but also medium-term population retention.
2. Deduction for acquisition of main residence (art. 58)
It is recovered —although in a restricted form— a deduction that had disappeared from the general IRPF regime:
- 15% of the amounts invested or 20% in municipalities of special attention, with a limit of €6,000 per year.
Requirements:
- The dwelling must be intended as a main residence.
- The taxpayer must have school-age children under 18 in the municipality (except children under three years old).
- Income limit: €36,000 per year for individual taxation.
- It is incompatible with the state deduction for the purchase of a main residence currently in transitional regime.
This is a highly significant incentive, as it reopens the tax benefit for home purchase, limited exclusively to those who choose to settle in rural areas.
3. Deduction for the rehabilitation of the main residence (art. 59)
In terms similar to the acquisition:
- 15% of the amounts invested in rehabilitation, or 20% in rural municipalities of special attention, with a limit of €6,000 per year.
Requirements:
- The housing must have been built before 1 January 1970.
- The works must be of sufficient magnitude, with a cost exceeding 25% of the acquisition price or the market value of the property, excluding the land.
- Incompatible with other regional or state deductions for rehabilitation.
- The measure strengthens the strategy to recover built heritage and reactivate the real estate market in rural areas, often characterised by the existence of old and unused housing.
4. Common rules for acquisition and rehabilitation (art. 60)
The legislator establishes a uniform framework that affects both the acquisition and the rehabilitation of housing:
- The deduction can be applied in the year of the investment and in the following 14 years, provided there are actual expenses.
- The main residence is also considered to include the storage room and up to two parking spaces acquired together with the property.
- The residence must be maintained for three continuous years, except for justified reasons such as marriage, work relocation, separation, or disability.
- If there is reinvestment with exemption from capital gain, the deduction base must be reduced.
5. Deduction for rental of main residence (art. 61)
For those who choose to rent instead of buying:
- 15% of the rent, up to €600 annually.
- 20% of the rent, up to €1,200 annually, in rural municipalities of special attention.
Basic requirements:
- Maximum age of 35 years, except for families with children under 16 years old who attend school in the local area.
- Maximum income: €30,000 individually or €45,000 jointly.
- Incompatible with the general Catalan rental deduction provided for in the Tax Code.
This incentive aims to facilitate access to housing for young people and families in rural municipalities, even when they do not opt for ownership.
III. Tax reform in ITP-AJD: articles 62 to 64
Chapter II of Title V of Law 8/2025 introduces a significant reform in the Tax on Property Transfers and Documented Legal Acts (ITP-AJD). Its objective is twofold: to make access to housing in rural municipalities more affordable and to promote the rehabilitation of the existing housing stock.
Reduced tax rates and specific discounts are established, measures that directly affect public deeds granted in notaries. Therefore, this legislative block acquires special importance in notarial and registry practice.
1. Reduced rates on the purchase of a primary residence (art. 62)
Article 62 establishes a reduced tax rate of 4% on ITP for the transfer of properties located in rural municipalities intended as the habitual residence of the purchaser.
If the acquisition takes place in a rural municipality of special attention —those with fewer than 500 inhabitants or at serious risk of depopulation—, the rate drops to 3%.
Requirements to apply for the tax benefit:
- The property must be intended as a main residence, with actual occupation within a maximum period of 12 months from acquisition (or from the completion of construction works in the case of building).
- The purchaser must be part of a family unit with school-aged children in the rural municipality (or in affiliated centres).
- The family income cannot exceed €36,000 per year.
The benefit is provisional until the conditions of use are verified, and the maintenance of the property as a main residence is required for a minimum of three years.
In practice, this measure can represent a substantial saving: a property worth €150,000 would be taxed €15,000 at the general rate of 10%, compared to €6,000 at 4% or €4,500 at 3%.
2. Reduced rates on acquisitions for rehabilitation (art. 63)
The law extends the benefit to those who buy homes for rehabilitation in rural municipalities, applying equally a rate of 4% (or 3% in municipalities of special attention).
Additional requirements:
- The dwelling must have been built before 1 January 1970.
- The rehabilitation works must be completed within a maximum period of two years from the acquisition.
- The cost of the works must exceed 25% of the acquisition price or the market value of the property (excluding the value of the land).
- The property must be used as the main residence within 12 months following the completion of the works, and maintained as such for at least three years.
This incentive aims not only to facilitate the purchase but also to reactivate old unused homes and generate economic activity in the local construction sector.
3. Discount on title deeds and notarial acts (art. 64)
Article 64 establishes a measure of special notarial relevance:
- A 75% reduction in the ITP-AJD tax quota in the mode of onerous property transfers for domain files, notoriety acts and complementary acts linked to properties located in rural municipalities is recognised.
This measure responds to a common issue: many properties in rural areas lack registered titles or present registry deficiencies. Reducing the tax burden in these cases facilitates the legal regularisation of rural and urban properties, providing preventive legal certainty and opening the door to future transfers, inheritances or access to mortgage financing.
It is important to clarify that the reduction affects the tax quota, but not the notarial or registry fees.
IV.- Entry into force of Law 8/2025
Law 8/2025, of 30 July, on the Statute of Rural Municipalities of Catalonia, will come into force on 20 August 2025, that is, twenty days after its publication in the Official Gazette of the Generalitat of Catalonia.
It is worth highlighting a significant exception: the tax measures on the Personal Income Tax (IRPF), regulated in Chapter I of Title V, will not be applicable until 1 January 2026, coinciding with the start of the fiscal year following the approval of the regulation.
V.- Conclusions
The Law 8/2025 of the Statute of Rural Municipalities of Catalonia establishes a comprehensive fiscal package that combines deductions in the IRPF with reduced rates and discounts in the ITP-AJD, with the aim of making living and investing in the rural world more attractive. The savings can be considerable, but are subject to strict requirements regarding income, deadlines, and effective use as a main residence.
Notable are the incentive for the rehabilitation of old houses and the 75% discount on property registration and notarial deeds, measures that strengthen legal certainty and allow the recovery of built heritage. However, limitations and risks of interpretation remain, requiring clear application by the Administration.
The success of this reform will depend on two essential factors: the existence of basic services in rural municipalities and the effective dissemination of the tax benefits. In this context, the role of the notary is decisive: to inform rigorously, warn of conditions and deadlines, and guarantee the correct documentation of each transaction.
In short, we are faced with a regulation that combines territorial cohesion, fiscal stimulus, and legal certainty, destined to become a key tool to curb depopulation and revitalise the rural environment in Catalonia.
If you need more information, do not hesitate to contact our notary for the purchase of homes and rural houses. Our Notaries in Barcelona will resolve all your doubts.
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