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Spain has announced plans to introduce a punitive tax of as much as 100% on real estate acquisitions by non-residents from non-EU countries, such as the United Kingdom. The measure, aimed at deterring external property investments, reflects growing concerns about housing affordability and the influence of foreign buyers on the domestic market.
Prime Minister Pedro Sánchez, in announcing the proposal, described the measure as “unprecedented” and argued that it was a critical step in addressing Spain’s escalating housing crisis. He emphasized the urgency of the situation, stating that bold action was required to ensure the availability and affordability of homes for Spanish residents.
“The West faces a decisive challenge: To not become a society divided into two classes, the rich landlords and poor tenants,” he said.
Prime Minister Pedro Sánchez, in announcing the proposal, described the measure as “unprecedented” and argued that it was a critical step in addressing Spain’s escalating housing crisis. He emphasized the urgency of the situation, stating that bold action was required to ensure the availability and affordability of homes for Spanish residents.
“Which, in the context of shortage that we are in, [we] obviously cannot allow,” he added.
Prime Minister Pedro Sánchez explained that the measure was specifically aimed at “prioritizing that the available homes are for residents.” He emphasized that this policy seeks to ensure that housing remains accessible to those who live and work in Spain, rather than being dominated by foreign investment.
Sánchez offered no specifics about the mechanics of the proposed tax or a timeline for its introduction to parliament, where he has frequently faced challenges in securing the necessary votes to advance his legislative agenda. The lack of clarity has raised questions about the feasibility of the measure.
But his government said the proposal would be finalised “after careful study”.
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This tax proposal is part of a broader set of initiatives unveiled by Prime Minister Pedro Sánchez on Monday, designed to tackle the pressing issue of housing affordability across Spain. The package includes a dozen targeted measures aimed at addressing the housing needs of residents and mitigating market pressures.
Among the other initiatives revealed were incentives for landlords, such as tax exemptions for those providing affordable rental options, the allocation of more than 3,000 homes to a public housing entity, and the introduction of tighter controls and higher levies on short-term tourist rentals. These measures form part of a larger strategy to improve housing access.
He highlighted the inequity in the current tax system, stating, “How is it fair that those who own three to five properties for short-term rentals are taxed less than the hotel industry?” This, he suggested, necessitates immediate action.