News: Tax of up to 100% on property purchases by non-resident, non-EU citizens

This week, Spanish Prime Minister Pedro Sánchez announced a series of measures aimed at addressing the country's housing crisis, with a particular focus on foreign property buyers. One of the most notable proposals is the introduction of a tax of up to 100% on property purchases by non-resident, non-EU citizens. This measure is intended to curb speculative investments that are believed to drive up housing prices, making homes more accessible to residents.

The Guardian

Sánchez highlighted that in 2023, non-EU residents purchased approximately 27,000 properties in Spain, often for investment rather than personal use. He emphasized the need to prioritize housing for residents over speculative investments.

BBC

In addition to the proposed tax on foreign buyers, the Prime Minister outlined other initiatives to improve housing affordability. These include transferring more than 3,300 homes and two million square meters of residential land to a new public housing company, offering tax exemptions for landlords who provide affordable housing, and tightening regulations on tourist rentals to ensure they are taxed appropriately.

Catalan News

These proposals are part of a broader effort by the Spanish government to tackle rising housing costs and ensure that access to housing is treated as a fundamental right rather than a commodity for speculation. The measures will require parliamentary approval, and further details on their implementation are expected in the coming weeks.

SUMMARY:
This measure aims to curb speculative investments and prioritize housing availability for residents. However, specific details on the tax scale, implementation mechanisms, and criteria for determining the exact tax rate have not been fully disclosed. The proposal is part of a broader plan to address Spain's housing crisis and will require parliamentary approval before it can be enacted.