Spain plans 100% tax for homes bought by non-EU residents

Spain plans to impose a tax of up to 100% on property purchases by non-residents from countries outside the European Union, such as the United Kingdom. This move aims to address the country's worsening housing crisis and prioritize housing needs for residents. Prime Minister Pedro Sánchez has called this measure "unprecedented" and emphasized its necessity.

Speaking at an economic forum in Madrid, Sánchez stated that in 2023, non-EU residents purchased 27,000 properties in Spain, which were "not for living" but "to profit from." He argued that this situation cannot be allowed amid a housing shortage. He further explained that the measure aims to "prioritize the use of existing housing for residents to live in."

Sánchez did not provide specific details on how the tax would operate or when it would be submitted to parliament for approval. He acknowledged the challenges in securing enough votes in parliament to pass the legislation. However, his government has indicated that the proposal will be finalized after "careful study." This tax is one of a dozen measures announced by the Prime Minister on Monday aimed at improving housing affordability in the country.

Other announced measures include tax breaks for landlords who offer affordable housing, the transfer of over 3,000 homes to a new public housing agency, and stricter regulations and higher taxes on tourist apartments. Sánchez pointed out, "It is unfair that those who have three, four, or five apartments for short-term rental pay less tax than a hotel."