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

Spain plans to impose a tax of up to 100% on properties purchased by non-residents from non-EU countries, such as the UK. This move aims to address the country's worsening housing crisis and prioritize ensuring that existing housing resources meet the needs of residents. Prime Minister Pedro Sánchez called the measure "unprecedented," considering it crucial for resolving the current housing predicament.

Speaking at an economic forum in Madrid, Sánchez stated that non-EU residents purchased 27,000 properties in Spain in 2023, but “not for living,” rather “to profit from them.” He emphasized that this situation is “clearly not permissible” given the current housing shortage. He also added that the move is intended to “prioritize ensuring that existing housing is available for residents.”

Sánchez did not detail the specific workings of the tax, nor did he provide a timeline for submitting it to parliament for approval. Although he often struggles to secure enough votes in parliament to pass legislation, his government stated that the proposal will be finalized “after careful study.” This tax measure is one of a dozen planned 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 provide affordable housing, the transfer of more than 3,000 homes to a new public housing agency, and stricter regulation and higher taxes on tourist apartments. Sánchez argued, "It is not fair that those who have three, four, or five apartments for short-term rental pay less tax than a hotel."