'New Spain rule will crush dreams of many Brits - but there's a way around it'
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Spain is planning to introduce a 100 per cent tax for homes bought by non-EU residents, but not all Brits will be impacted. For Brits already living in Spain, the 100 per cent tax on second properties can be avoided. Spain's Prime Minister Pedro Sanchez has announced a new tax up to 100 per cent, which will impact non-residents buying property from outside the EU, which includes the UK. The new tax is part of an effort to to tackle the country's housing crisis.
However, if you are a Brit already residing in Spain and looking to buy a second property, the tax is likely not to impact you. Hans Lenz, president of the ABINI association, and José Miguel Artieda of the API association suggested that the buyers who the tax will apply to will make up only a very small chunk of those looking to make the move, reports the Majorca Daily Bulletin.
British buyers have typically been the largest market behind German buyers, however, more than half of the British purchases in the Balearics are by people who have residency. Consequently, the measure will not affect them. They would therefore be unaffected by the measure that will place a 100 per cent tax burden on the purchase of homes.
Around a third of all purchases in the Balearics are by foreign buyers. Alastair Johnson, owner of Moving To Spain, told the Mirror: "Firstly, and most importantly, this measure, if passed, would not stop a UK or other non-EU citizen from moving to Spain and buying a home. The policy is aimed only at non-residents, so a UK citizen living in the UK could not buy property in Spain as a second home and or as an investment property. Any legal resident of Spain (regardless of nationality) would be welcome to purchase a property.
