Spain is considering a tax of up to 100% on properties purchased by non-residents from non-EU countries, such as the UK, in a bid to address its housing crisis.
Prime Minister Pedro Sánchez described the measure as “unprecedented” and essential to tackle the growing disparity between wealthy property owners and tenants struggling to find affordable homes.
Speaking at an economic forum in Madrid, Sánchez highlighted that non-EU residents bought 27,000 properties in Spain in 2023, often for investment purposes rather than residency.
He stated that in the current housing shortage, “we obviously cannot allow” such practices, emphasizing the need to ensure homes are available for residents.
The proposed tax is part of a broader housing reform agenda, with Sánchez’s government pledging a “careful study” before finalizing the details and presenting it to parliament, where legislative approval could face challenges.
Other measures announced include tax breaks for landlords offering affordable housing, the creation of a public housing body to manage over 3,000 homes, and stricter regulations on tourist rentals.
Sánchez argued it was unfair that “those with three, four, or five apartments as short-term rentals pay less tax than hotels,” signaling a push for greater equity in the housing market.
Source-BBC
