Spain Considers Striking Measure Against Non-EU Property Buyers

In a bold move to address Spain's housing emergency, Prime Minister Pedro Sánchez has proposed a remarkable 100% tax on properties acquired by non-residents from outside the EU—particularly targeting buyers from the UK.

This initiative, presented during an economic forum in Madrid, reflects a growing concern that the country faces a housing crisis exacerbated by foreign investments primarily aimed at profit rather than providing homes for residents. In 2023 alone, non-EU buyers purchased around 27,000 properties, leading Sánchez to assert the necessity of ensuring that housing remains accessible to local citizens. "We cannot allow people to invest in homes just to make money when there is such a short supply," he stated.

While details regarding the tax mechanism and legislative timing remain unspecified, the government assures a thorough finalization process. This proposed tax is part of a broader strategy, which includes significant measures like tax exemptions for landlords offering affordable housing and stricter regulations on tourist rentals to promote equity in the housing market. "It's unjust that those with multiple short-term rentals pay fewer taxes than traditional hotels," Sánchez noted, illustrating the urgency behind these proposed reforms.

As this situation develops, the balance between foreign investment and local housing needs remains a critical topic in Spain's evolving landscape.