Shocking drop in vacancy tax revenues! Where have 90,000 apartments gone?
Tax revenues are up, the real estate market is booming, but one tax in Valencia just scored a dramatic collapse. In 2025, vacancy tax revenues collapsed by as much as 64%! The government is proclaiming great success, but critics are sounding the alarm. Are the authorities turning a blind eye to "real estate sharks"
While the Generalitat Valenciana's total tax revenues are up a solid 12% in 2025, the tax on unoccupied properties has proven to be the black sheep of the budget. Instead of the millions expected, revenues shrank from €7.23 million in 2024 to just €2.54 million.
What exactly is a vacancy tax?
To understand the magnitude of this phenomenon, we need to know who is hit by this specific tax. It does not apply to the ordinary Smith, but to the largest players in the market:
- Grandes tenedores: Owners owning more than 10 properties.
- Major Targets: Financial institutions, powerful investment funds and annuitants.
- Tax condition: The property must stand vacant for more than two years without good reason.
The tax (introduced by the previous leftist Botà nic government) is progressive - the more empty apartments you have, the more you pay. Its main purpose was never to patch a budget hole, but to force the giants to release apartments to the rental or sales market, which would bring down rampant prices.
An official triumph or a nod to real estate sharks?
Valencia's Finance Ministry is rubbing its hands together. It explains this tax "crash" with the gigantic success of its policies. According to the authorities, thousands of apartments simply stopped being vacant and went on the market.
"The mobilization of real estate assets in the Valencian Community is evident, which translates into a greater supply of available housing." - government officials say.
Critics, however, have a very different theory. In their view, the 64 percent drop is not evidence of a miraculous market recovery, but of a dramatic decline in inspection efficiency. They suggest that the current government simply does not want to "irritate" the big investment funds by reducing fiscal pressure and delaying the collection of fees.
Giant data gap: Government controls just 2.8%!
The real scandal, however, lies in the official numbers, which completely miss the experts' estimates.
| Source of Data | Number of Vacancies of Large Owners | Government Control |
|---|---|---|
| Official Register of the Generalitat | 2,516 | 2.8% |
| Experts (Provivienda) | Approx. 90,000 | Not applicable |
It is clear from the data that the system is a hole. Authorities have only a fraction of what actually stands empty in the Valencian market under their control.
Strict penalties ... which are easy to get around?
The regulations (Decree 130/2021) are very strict on paper. If a property still hasn't been placed on the market after six months on the vacancy register, the Generalitat is required to impose severe financial penalties. The amount of the fine is calculated based on the monthly rental price of social housing per square meter, multiplied by the area and the number of months of delay.
Given that only 2.8% of vacant apartments are on the government's target, the large owners of 90,000 hidden apartments can still sleep soundly, avoiding both taxes and sanctions.
