Canary Islands to Tax Empty Homes to Combat Housing Crisis

Canary Islands Tackles Housing Crisis with New Tax on Vacant Homes The Canary Islands government is facing a significant housing shortage, with over 200,000 vacant homes across the archipelago. To address this issue, the government is proposing a new tax on empty properties. This measure aims to incentivize owners to rent or sell these vacant units, increasing the housing supply and potentially lowering rental costs. "We are reinforcing the taxation of vacant second homes to encourage their use as residential housing," stated a government spokesperson in a recent press conference. The tax increase is expected to generate revenue for the government while simultaneously addressing the critical housing shortage. In addition to the tax on vacant properties, the proposal includes setting the VAT on tourist rentals at 21%. This aims to balance the needs of the local population with the tourism sector. Furthermore, the government is offering incentives to landlords to lower rental prices, making housing more affordable for residents. The government's multi-pronged approach addresses the complex issue of housing scarcity while recognizing the economic contributions of tourism. The success of this initiative will depend on the cooperation of property owners and the effectiveness of the government's enforcement mechanisms. Experts are optimistic that the proposal will contribute to a more balanced and sustainable housing market in the Canary Islands.