Prime Minister Pedro Sánchez announced an unprecedented 100% tax on properties bought by non-EU residents in an effort to alleviate the housing emergency in the country.
Spain Introduces Controversial 100% Tax on Non-EU Property Buyers
Spain Introduces Controversial 100% Tax on Non-EU Property Buyers
Spain is set to implement a significant tax on homes purchased by non-EU residents, aimed at addressing the housing crisis.
The Spanish government is preparing to impose a radical tax—up to 100% on property purchases made by non-European Union residents. Announced by Prime Minister Pedro Sánchez, the measure is portrayed as a crucial step in combating a pressing housing crisis that threatens to deepen social divides.
"To not become a society divided into two classes, the rich landlords and poor tenants, is a decisive challenge we face in the West," Sánchez declared at an economic forum in Madrid. The urgency of the situation is underscored by the fact that 27,000 properties were acquired by non-EU residents in Spain in 2023, primarily as investment rather than for residency.
The government's stance is clear: such acquisitions exacerbate the local housing shortage and must be curtailed. While Sánchez noted that further details about the tax's implementation and the legislative timeline remain forthcoming, he emphasized its intent to protect housing availability for local citizens.
The proposed tax aligns Spain with other countries like Denmark and Canada, where similar measures exist. Alongside this initiative, the Spanish government is also expected to unveil a range of additional measures to promote housing affordability. These plans include tax breaks for landlords who offer affordable housing, the transfer of over 3,000 properties to a public housing entity, and stricter regulations governing short-term rental properties, which Sánchez argues currently receive favorable tax treatments compared to hotel operators.
By positioning this tax as a step towards equitable housing, Sánchez aims to address a crisis that has only intensified amid rising property prices and increasing demand from foreign investors. As Spain calculates the response to these burgeoning housing challenges, the proposed tax is one of several measures in a comprehensive strategy to ensure that all citizens can access affordable and stable homes.
