Spain’s government is grappling with a deepening housing affordability crisis and it has proposed targeting foreign buyers as a potential solution.
The real solution to Spain’s housing affordability issues lies in increasing supply, not in imposing taxes or bans on foreign buyers.
Non-EU buyers represent a small portion of the overall market, and while they may have an impact in certain areas like Barcelona and Madrid, their influence on national housing affordability is limited.
Regardless of the outcome, the focus on taxing foreign buyers may serve as a political strategy to create uncertainty in the market, discouraging foreign investment without addressing the underlying issue of housing supply.
However, Spain’s economy relies heavily on tourism and foreign investment, and many second homes are also owned by Spaniards or other Europeans.
