Spain is planning to introduce a tax of up to 100% on properties purchased by non-EU nationals, such as UK residents, as part of efforts to address the country’s housing crisis.
Prime Minister Pedro Sánchez announced the initiative, calling it “unprecedented” and necessary for tackling Spain’s housing emergency. He warned that Spain could face a divide between wealthy property owners and struggling tenants, a situation he said the country could not afford.
Sánchez stated that 27,000 properties were bought by non-EU residents in 2023, many not for personal use but as an investment, contributing to the current housing shortage. He stressed that the priority should be to ensure that homes are available for residents.
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While Sánchez did not provide details about how the tax would be implemented or when it would be submitted to parliament, he emphasized that the proposal would undergo careful consideration. The government is also exploring other housing reforms, including tax incentives for landlords offering affordable housing, transferring 3,000 homes to public housing, and increasing taxes on short-term rental properties.
Sánchez also pointed out that landlords with multiple short-term rentals should be taxed at higher rates, noting that they currently pay lower taxes than hotels.
