Brits buying homes in Spain to be hit with 100% property tax
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Non-EU citizens seeking a home in the sun face a huge tax hike on housing. The Spanish government has announced a major tax hike on housing in a hit to Brits buying properties in Spain. As part of a new proposal, property taxes for non-EU citizens in Spain would be equivalent to 100 per cent of the value of a home.
The tax increase aims to limit the purchase of property by non-EU residents without legal residence in Spain. Spanish prime minister Pedro Sanchez unveiled the proposal for 12 new housing measures in Madrid on Monday (13 January). Mr Sanchez said: “The tax rate that non-Europeans who do not reside in our country must pay when buying a home in Spain will be increased to 100 per cent, prioritising that the available homes are for residents.”.
In the last year, Spain has seen a wave of demonstrations against overtourism and holiday rental properties as a result of the mounting housing crisis for residents struggling to find available homes. Soaring rents in popular cities, including Madrid, have caused locals to feel they are being priced out of the Spanish market.
One in five homes sold in Spain are bought by foreigners, with many of them non-residents. Currently, the tax rate for non-residents of the EU is around 24 per cent of the price of the house, depending on location. According to Mr Sanchez, non-residents bought 27,000 houses last year “mainly for speculation”.
