Effects of fiscal treatments of second home ownership on renting supply

Resumen

A considerable proportion of the Spanish population has problems to access housing because of the high prices, consequence of successive ¿housing booms¿. Nevertheless, Spain is the EU country with a higher number of empty houses. This situation has been called the ¿Spanish real estate market waste¿. A potential solution to this problem could be implementing tax measures encouraging empty houses introduction into the market. This article analyzes the determinants of the decision of renting an empty house, emphasizing tax variables. Simulations of possible PIT (Personal Income Tax) reforms are also performed. Data is gathered from the European Community Household Panel.