Spain is set to introduce a groundbreaking tax policy targeting non-EU residents purchasing properties in the country, with rates potentially reaching up to 100%. Prime Minister Pedro Sánchez announced this “unprecedented” measure during an economic forum in Madrid, citing the urgent need to address Spain’s housing crisis.”The West faces a decisive challenge: to not become a society divided into two classes, the rich landlords and poor tenants,” he declared.
The move comes in response to the 27,000 properties bought by non-EU residents in 2023, which Sánchez emphasized were acquired “not to live in” but “to make money from them.” In a context of housing shortage, he stated, “[we] obviously cannot allow” such practices.The tax is designed to “priorit[ise] that the available homes are for residents,” ensuring that local housing needs are met before speculative investments.
While Sánchez did not provide specifics on the tax’s implementation or a timeline for parliamentary approval, his government assured that the proposal would be finalized “after careful study.” This measure is part of a broader package aimed at improving housing affordability in Spain, which includes a tax exemption for landlords offering affordable housing, the transfer of over 3,000 homes to a new public housing body, and stricter regulations and higher taxes on tourist flats. “It isn’t fair that those who have three, four or five apartments as short-term rentals pay less tax than hotels,” Sánchez remarked.
The proposed tax is a bold step in Spain’s efforts to balance housing accessibility and curb speculative investments. as the government finalizes the details, the policy could considerably reshape the property market, particularly for non-EU buyers.
| Key Measures Announced by Prime Minister Sánchez |
|—————————————————–|
| 100% Tax on Non-EU Property Purchases |
| Tax Exemption for Affordable Housing Providers |
| Transfer of 3,000 Homes to Public Housing body |
| higher Taxes and Regulation on Tourist Flats |
This comprehensive approach aims to tackle the housing emergency head-on, prioritizing residents over speculative gains. As Spain navigates this critical challenge, the world watches to see how these measures will unfold.
