
Spain’s tax plans for non-EU property buyers « Euro Weekly News
Spanish Prime Minister, Pedro Sanchez. Credit: Shutterstock.
Spain has announced drastic new proposals to combat its growing housing crisis, including a controversial 100 per cent tax on property purchases by non-EU buyers who do not reside in Spain.
Prime Minister Pedro Sánchez unveiled the plan as part of a 12-point strategy to tackle soaring property prices, rental costs, and the lack of affordable housing for Spanish residents.
Spain’s housing crisis: Sanchez believes it is linked to non-EU property buyers
Addressing the issue, Sánchez revealed that non-residents from outside the EU bought 27,000 properties in 2023. He remarked: “not to live in them, but mainly to speculate”.
He said this was “something that, in the context of the shortages we are experiencing, we cannot afford.”
The situation is particularly dire in cities like Barcelona and Madrid, where housing prices have surged.
Prime Minister Pedro Sánchez’s proposal to address housing crisis in Spain
100% tax on non-EU buyers: Non-resident buyers may be required to pay taxes equivalent to the property’s value. Sanchez said that the new tariff would help “prioritise the availability of housing for residents.”
Higher taxes on short-term rentals: Platforms like Airbnb will face higher taxes, reclassifying tourist apartments as businesses to match hotel taxation levels.
Public housing expansion: A new public housing body will oversee 3,300 homes, with plans to rehabilitate vacant properties for affordable rentals.
€6 billion for new homes: Public funds will support the construction of 25,000 additional homes, ensuring these remain state-owned to prevent privatisation.
Incentives for affordable rentals: Landlords adhering to Spain’s ‘Reference Price Index’ for rent will receive income tax exemptions. The Reference Price Index (Índice de Referencia de Precios de Alquiler) is a government-established tool designed to monitor and regulate rental prices in Spain. It provides a benchmark for what landlords can reasonably charge for residential properties in specific areas.
Despite Sanchez’s ambitions, some experts are sceptical. Antonio de la Fuente, managing director at Colliers, said the 27,000 non-EU property purchases represent only a fraction of Spain’s 26 million homes, calling it “a drop in the ocean.” He warned that the plan could deter both individual and institutional investors, creating further “uncertainty and noise” in the market, as reported by The Financial Times.
The proposals must pass Spain’s parliament, where Sánchez faces challenges securing a majority. If approved, the measures could signal a transformative shift in Spain’s housing policies, aiming to balance tourism, investment, and residents’ rights to affordable housing.
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