Spain plans 100% tax on homes purchased by non-EU residents

Spain is considering imposing a tax of up to 100% on properties purchased by non-residents from countries outside the EU, such as the UK.

Announcing the move, Prime Minister Pedro Sánchez said the “unprecedented” measure was necessary to address the country’s housing emergency.

“The West faces a decisive challenge: not to become a society divided into two classes, the rich owners and the poor tenants,” he said.

Non-EU residents bought 27,000 properties in Spain in 2023, he told an economic forum in Madrid, “not to live in them” but “to make money with them”.

“Which, in the context of shortage in which we find ourselves, (we) obviously cannot allow,” he added.

The move was therefore designed to “prioritize available housing for residents,” he said.

Sánchez has not provided details on how the tax will work or the timeline for its presentation to Parliament for approval, where he has often struggled to muster enough votes to pass legislation.

But his government said the proposal would be finalized “after careful study”.

This is one of dozens of measures announced on Monday by the Prime Minister aimed at improving housing affordability in the country.

Other measures announced include a tax exemption for landlords offering affordable housing, the transfer of more than 3,000 homes to a new public housing body, and stricter regulations and higher taxes on tourist apartments. .

“It is not fair that those who have three, four or five short-term rental apartments pay less tax than hotels,” he said.