Spain is taking a bold step to address its housing crisis by proposing a tax of up to 100% on properties purchased by non-residents from countries outside the European Union, such as the United Kingdom. This significant measure, announced by Prime Minister Pedro Sánchez, aims to prioritize housing availability for residents amid rising concerns over affordability.
During an economic forum in Madrid, Sánchez emphasized the urgency of the situation, stating, “The West faces a decisive challenge: To not become a society divided into two classes, the rich landlords and poor tenants.” His comments highlight the government’s commitment to ensuring that housing is accessible to Spanish residents rather than being dominated by foreign investors.
In 2023, non-EU residents acquired approximately 27,000 properties in Spain, with the intention of renting them out rather than using them as primary residences. Sánchez noted that this trend contributes to the ongoing housing shortage, stating, “Which, in the context of the shortage that we are in, [we] obviously cannot allow.” The proposed tax aims to curb such purchases, ensuring that homes are available for those who need them.
Although Sánchez has not yet detailed how the tax will be implemented or when it will be introduced to parliament for approval, his office has described the plan as a means to limit the acquisition of properties by “non-resident non-EU foreigners.” The proposed tax would align with similar measures in countries like Denmark and Canada, where foreign buyers face significant tax burdens.
This initiative is part of a broader strategy announced by Sánchez, which includes several measures aimed at improving housing affordability in Spain. These measures also encompass tax exemptions for landlords offering affordable housing, the transfer of over 3,000 properties to a new public housing body, and stricter regulations and higher taxes on tourist rentals.
Sánchez criticized the current taxation system, stating, “It isn’t fair that those who have three, four, or five apartments as short-term rentals pay less tax than hotels.” His administration is committed to fostering a fairer housing market that benefits residents rather than external investors.
As Spain moves forward with these proposals, the government aims to strike a balance between attracting foreign investment and ensuring that housing remains accessible to its citizens. The final details of the tax and other measures will be determined following careful study and consideration.
