'Extreme' tax hike plan shock for Brits looking to buy or sell a home in Spain
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UK buyers could be deterred by plans for a significant increase in property taxes in Spain, potentially leading them to consider alternatives like Cyprus and Greece, according to experts. The proposed measures in Spain, aimed at alleviating the country's housing crisis, include a tax of up to 100% on properties purchased by non-European Union residents. Toby Leek, president of NAEA Propertymark, commented: "Many Brits may take the news of heightened property taxes in Spain as a blow considering moving to such a location could well have been a lifelong ambition, especially with the convenient location and, of course, the improved weather it provides.".
He acknowledged Spain's efforts to address its housing emergency and protect its citizens but described the proposal as "quite an extreme increase". Mr Leek further noted: "Many Brits will likely be put off by this extreme hike in property taxes and will be looking to other countries such as Cyprus and Greece with lower property tax levels for their dream home move.".
Spain’s Prime Minister Pedro Sanchez stated that the overall aim is to provide "more housing, better regulation and greater aid". In 2023, non-EU residents bought 27,000 properties in Spain, not for living in, but for profit-making purposes, he said. Like the UK, Spain has been grappling with pressures on housing costs, with rents in major cities like Barcelona and Madrid being a particular concern, alongside rising house prices.
Tourism and short-term lets are aggravating housing issues, according to Seila Sanches Lucas, a solicitor at the global firm Broadfield. She commented: "The proposal by the Spanish Prime Minister will be concerning for those that have already chosen to retire in Spain and for those considering a retirement in the sun.".
