Spain Plans to Address Housing Crisis with Measures Including 100% Tax on Non-EU Property Buyers
Spanish Prime Minister Pedro Sánchez has announced a plan to address the country’s growing housing crisis, which includes a 100% tax on properties bought by people who are neither citizens nor residents of the European Union. The plan aims to provide “more housing, better regulation and greater aid” to tackle housing affordability and high rents in the country.
The housing affordability crisis in Spain is particularly acute in cities like Barcelona and Madrid, where incomes have failed to keep up with rising housing prices and rents. The country sees more tourists than almost any other, with over 88.5 million visitors in 2024, which has driven up rental prices and created tension between visitors and residents.
To address the issue, Spain plans to limit the number of homes foreigners purchase by raising taxes on properties bought by non-EU citizens and non-residents. The tax would be up to 100% on properties bought by these individuals, although the timeline and details of the implementation are unclear.
The plan also includes measures to build more public housing, allocate residential land to a newly created public housing agency, and provide tax breaks and protections for landlords who provide affordable housing. Additionally, the government plans to amend laws to speed up construction processes and expand the availability of land for private construction.
The housing crisis is a crucial issue for Sánchez’s left-wing minority coalition, which won another four-year term in 2023. The Spanish Constitution guarantees all Spaniards the right to enjoy a “decent and adequate” home, and the government has a duty to allow citizens to exercise that right.
However, some experts have questioned the effectiveness of the plan, with one real estate analyst saying that the tax would not lead to homeowners or real estate promoters guaranteeing that high-end properties end up in the hands of middle-class Spaniards. Others have expressed concerns that the tax would hurt the real estate market and drive away foreign investment.