- Spain proposes 100% tax on homes bought by non-EU residents
- PM says the move will help to tackle growing divide between wealthy landlords and struggling tenants
- Non-EU buyers purchased 27,000 properties in Spain in 2023
- Sánchez says many were bought as investments to generate income
Spain proposes 100% tax on homes bought by non-EU residents
Spain is planning a bold move to address its housing crisis by introducing a tax of up to 100% on properties purchased by non-EU residents, including those from the UK.
Prime Minister Pedro Sánchez unveiled the proposal, calling it an “unprecedented” step to tackle the growing divide between wealthy landlords and struggling tenants. Speaking at an economic forum in Madrid, Sánchez emphasised the urgency of the housing emergency, stating that the measure aims to ensure that available homes are prioritized for residents.
According to Sánchez, non-EU buyers purchased 27,000 properties in Spain in 2023. Many of these homes, he noted, were not intended for personal use but as investments to generate income.
While details on how the tax would be implemented or when it might be introduced remain unclear, the government has pledged to finalise the proposal after a thorough study. However, Sánchez’s ability to pass the legislation may face challenges, as his government has previously struggled to secure enough votes in parliament.
This proposed tax is part of a broader strategy announced by Sánchez to improve housing affordability in Spain. Other initiatives include offering tax breaks to landlords who provide affordable housing, transferring over 3,000 homes to a public housing agency, and tightening regulations on tourist flats with increased taxes.
