Up to 100% on Non-Resident Property Buyers In a bold move addressing Spain’s pressing housing crisis, Prime Minister Pedro Sánchez announced plans to introduce a tax of up to 100% on properties purchased by non-residents from non-EU countries, including the UK. This “unprecedented” policy aims to alleviate the country’s housing emergency and ensure that available properties prioritize local residents.
During an economic forum in Madrid, Sánchez articulated the necessity of this measure, stating, “The West faces a decisive challenge: to prevent a society divided into two classes, the wealthy landlords and the impoverished tenants.” His comments highlight a growing concern about housing accessibility amidst rising demand and increasing property speculation by foreign investors.
In 2023, non-EU nationals acquired 27,000 properties in Spain, according to Sánchez. He emphasized that many of these purchases were not intended for residency but rather as profit-generating investments. He lamented, “In the context of the shortage we are facing, this practice cannot be allowed.” The proposed tax is part of a broader set of initiatives to improve housing affordability across Spain.
While Sánchez did not specify the logistics of the tax implementation or a timeline for parliamentary approval, he reassured attendees that the proposal would undergo a thorough evaluation. The current political landscape has seen challenges for Sánchez’s administration in securing enough support to pass new legislation. Other measures proposed alongside the non-resident tax include:
- Tax Exemptions for Landlords: Landlords offering affordable housing will receive tax breaks.
- Public Housing Expansion: More than 3,000 housing units will be allocated to a newly established public housing organization.
- Regulatory Changes for Tourist Rentals: Increased regulation and higher taxes for short-term rentals to ensure fairness with hotel taxation.
Sánchez raised concerns about the fairness of current rental practices, stating, “It isn’t fair that those who own multiple properties as short-term rentals pay less tax than hotels.” Spain’s ambitious approach to tackling the housing crisis reflects its dedication to creating a balanced housing market that serves the needs of its residents. The steps taken are expected to open a critical dialogue about property ownership and its implications on national housing policy.
