The rate of property sales tax will increase in the New Year in some cases as much as 50 percent. The Spanish tax authorities have given the green light to councils to raise the rate of tax in some circumstances from January 1, 2023.

Anyone who bought a home between 2016 and 2018 and decides to sell it in 2023 will pay more tax than a person who bought a home at an earlier date, according to Spanish media reports. The property tax is levied on the time a person has owned the house and it is paid directly to the councils and is therefore an important form of revenue. The tax is basically a levy on the increase in the value of the land during time of ownership.

The real estate and construction sector has slammed the move claiming that it might make people think twice about buying a home.