Spanish Cabinet Passes Landmark 150% Property Tax Penalty on Vacant Homes Local councils on the Costa del Sol receive new statutory powers to penalise owners who leave residential properties unoccupied for two years. Property owners across southern Spain face substantial shifts in local holding costs following the formal national passage of new statutory regulations that empower local authorities to levy municipal property tax surcharges of up to 150% on long-term empty homes. The measure, cleared through ministerial channels in Madrid and entering the municipal rulebook at the start of October, enables town halls throughout the Costa del Sol to identify residential units that have remained unoccupied without justified grounds for continuous periods exceeding two years. For expat property investors and non-resident owners holding holiday apartments, the legislation marks a pivotal change in how Spanish municipalities can apply the IBI property tax. Stricter Controls on Residential Stock Under the framework, local councils have been granted discretionary powers to calculate whether a home is genuinely empty based on utility consumption metrics, specifically municipal water supply records and electricity grid usage. If readings fall below minimum occupational thresholds over a rolling 24-month cycle, local finance departments may begin applying punitive surcharges above standard municipal rates. The regulatory push follows mounting public pressure over residential rental shortages in key urban areas, where working families and service staff have faced steep cost increases. To incentivise compliance, central authorities have established an accompanying framework offering capital gains allowances and tax offsets to landlords who bring empty flats back into long-term residential leasing programmes or convey them into regional housing pools. Practical Steps for Coastal Property Owners Legal and fiscal practitioners advising international clients across the coast urge non-resident owners to review their local registration status. Homes used regularly as documented secondary residences for seasonal holidays, properties undergoing registered architectural renovations, or those actively marketed for long-term let through licensed estate agencies are expected to receive clear exemptions under the ordinance. However, property owners who hold multiple speculative properties or who keep coastal apartments unlet between brief visits must ensure that their utility usage and municipal census entries are properly documented. As municipal treasuries across the province of Malaga assess how to integrate the 150% surcharge into upcoming 2027 local budgets, keeping administrative affairs current has become essential for foreign homeowners across the region.