Spain plans to introduce a tax of up to 100% on properties bought by non-residents from non-EU countries, including the UK, to address its housing crisis. Prime Minister Pedro Sánchez called the move “unprecedented” and said it is needed to prevent a divide between rich landlords and poor tenants. In 2023, non-EU buyers purchased 27,000 properties mainly for investment, worsening the country’s housing shortage.
The plan is to make more homes available for residents. However, Sánchez did not give details about how or when the tax would be implemented. Non-residents, defined as those who live in Spain for fewer than 183 days a year, would face this tax, which is similar to rules in Denmark and Canada. The government plans to finalise the proposal after further review.
Foreign buyers, including EU citizens, made up 15% of Spain’s housing market in 2023, with 87,000 of the 583,000 total sales. The proposed tax has caused concern among property professionals. Simon Creed of Azahar Properties said the tax could discourage non-EU buyers, especially those from the UK, and might unfairly benefit EU citizens. He described the tax as extreme but agreed more houses are needed.
Antonio de la Fuente from Colliers International Spain doubted the tax would solve the housing shortage, suggesting that increased housing supply in cities would be of more help. Some British buyers are now rethinking their plans to buy in Spain, worried about the tax’s effect on resale values and further future taxes.
The tax is part of a broader plan to make housing more affordable. Other measures include tax breaks for landlords offering affordable housing, adding 3,000 homes to public housing, and stricter rules on tourist rentals. Sánchez criticized the lower taxes on short-term rental owners compared to hotels, and announced plans to end the “golden visa” programme, which offers residency for those purchasing property of €500,000 or more.
Housing prices in Europe have risen 48% over the past decade, far outpacing income growth. Many are calling for urgent action from public institutions to address the growing gap between housing costs and income, describing it as an “unbearable” problem that needs a strong response.