Spain's PM Sánchez Proposes 100% Tax on Non-EU Property Buyers to Curb Speculative Purchases

Jan 14, 2025, 11:17 AM

Spain is planning to impose a tax of up to 100% on the value of properties bought by non-residents from countries outside the European Union, such as the UK, in an effort to address the country's housing affordability crisis. Prime Minister Pedro Sánchez announced this 'unprecedented' measure, necessary to meet the housing emergency. The tax aims to limit speculative purchases by non-EU foreigners, who bought approximately 27,000 properties in Spain in 2023, primarily for investment rather than residence. Sánchez's proposal is part of a broader package of 12 measures intended to improve housing affordability, which also includes building more public housing, allocating 2 million square meters of residential land to a new public housing agency, offering tax exemptions for landlords providing affordable housing, and increasing taxes on short-term tourist rentals. The housing crisis is particularly acute in cities like Barcelona and Madrid, where tourism, a key economic driver with 88.5 million tourists in 2024, has contributed to rising rental prices. Sánchez's minority coalition faces challenges in passing this legislation through Parliament.