In a bid to combat the growing housing emergency, Spain’s Prime Minister Pedro Sánchez announced a radical plan to impose an up to 100% tax on homes purchased by non-EU residents. Speaking at an economic forum in Madrid, he underscored the urgency of the situation, emphasizing the need to avoid a society divided between wealthy landlords and struggling tenants.
Spain Introduces Groundbreaking Tax for Non-EU Property Buyers
Spain Introduces Groundbreaking Tax for Non-EU Property Buyers
Spain's government unveils drastic measures to tackle housing crisis, including a proposed 100% tax on foreign property investors.
The recent data reveals that non-EU residents acquired around 27,000 properties in Spain in 2023, primarily for investment rather than habitation. Sánchez argued that this trend is unsustainable given the current housing shortages. He stated, “We cannot allow this in the context of the shortage that we are facing,” while advocating for prioritizing housing availability for residents.
While specific details about the implementation of the tax remain vague, with no set timeline for parliamentary discussion, Sánchez’s administration assured that proposals are forthcoming following thorough evaluations. This initiative is part of a broader strategy that includes diverse housing measures, such as tax breaks for landlords providing affordable options, transferring over 3,000 properties to a public housing authority, and stricter regulations and taxes on rental accommodations.
Sánchez also remarked on the inequality faced by short-term rental hosts compared to hotels, arguing, “It isn't fair that those who have three, four or five apartments as short-term rentals pay less tax than hotels.” This comprehensive approach reflects an urgent response to Spain’s housing crisis in an increasingly complex economic landscape.
While specific details about the implementation of the tax remain vague, with no set timeline for parliamentary discussion, Sánchez’s administration assured that proposals are forthcoming following thorough evaluations. This initiative is part of a broader strategy that includes diverse housing measures, such as tax breaks for landlords providing affordable options, transferring over 3,000 properties to a public housing authority, and stricter regulations and taxes on rental accommodations.
Sánchez also remarked on the inequality faced by short-term rental hosts compared to hotels, arguing, “It isn't fair that those who have three, four or five apartments as short-term rentals pay less tax than hotels.” This comprehensive approach reflects an urgent response to Spain’s housing crisis in an increasingly complex economic landscape.
