Spain: Spain is set to raise a controversial tax of up to 100 percent on properties purchased by non-residents from outside the EU, including those from the UK. Prime Minister Pedro Sanchez explained the move as “unprecedented” and necessary to address the country’s housing crisis.
Speaking at an economic forum in Madrid, Sanchez said the measure is aimed at tackling a growing trend of foreign investors buying homes in Spain exclusively for profit. Sanchez stated that, “The West faces a decisive challenge: To not become a society divided into two classes, the rich landlords and poor tenants.”
According to Sanchez, over 27,000 properties were bought by non-EU residents in 2023, often for acquisition purposes rather than as primary residences.
Although no specific details or timeline for the tax have been provided, the government has committed to finalising the proposal after a thorough study. Passing the legislation could prove challenging for Sanchez, whose coalition has struggled to secure parliamentary support for key policies in the past.
The announcement is part of a broader package of measures aimed at improving housing affordability in Spain. These include a tax exemption for landlords delivering affordable housing, transferring over 3,000 homes to a newly established public housing body, and instructing stricter regulations and higher taxes on tourist flats to create a level playing field with hotels.
Sanchez added that, “It isn’t fair that those who have three, four, or five apartments as short-term rentals pay less tax than hotels.” The measures underline the Spanish government’s intensified focus on handling the housing crisis as rising property prices continue to put pressure on locals.
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