The organization believes that the lien on obsolete values in old houses encourages their owners to continue in them instead of freeing up large houses for younger families.
The price of housing has been growing unstoppably in recent years, but taxes on this asset have remained more or less stable, which generates an "unfair and inefficient" system, according to a report by the OECD (Organization for Economic Cooperation and Development). “Revenues from housing taxes have not kept up with increases in prices,” reveals the document published this Thursday.
Thus, the organization that brings together 38 countries -including Spain- considers that taxation on housing should be revalued based on market prices so that it does not become outdated, causing an escalation in said prices and making it difficult for young and from classes with fewer resources.
The report 'Housing taxes in OECD countries' reveals that when the tax bases of these real estate property taxes are not updated to prices, "distortions" are generated with taxpayers who are suffering from price increases because they start to access the market.
And this means that older households have no incentive to move to smaller and less valuable houses and free up space in large homes for younger families, explains the organization. The low tax burdens arising from obsolete values "reduce the incentives to use the housing stock efficiently" as owners of undervalued homes are pushed to stay in them.