Spain proposes 100% tax on homes bought by non-EU residents
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Pedro Sánchez announces measure in response to anger over rising housing costs. Spain has announced plans to impose a tax of up to 100% on real estate bought by non-residents from countries outside the EU, such as the UK, in an aim to tackle the country’s housing crisis.
The measure was one of a dozen unveiled Monday by the country’s prime minister, Pedro Sánchez, as the government seeks to quell mounting anger over housing costs that have soared far beyond the reach of many in Spain. Sánchez sought to underline the global nature of the challenge, citing housing prices that had swelled 48% in the past decade across Europe, far outpacing household incomes.
“The west faces a decisive challenge: to not become a society divided into two classes, the rich landlords and poor tenants,” he told an economic forum in Madrid. The proposed measures include expanding the supply of social housing, offering incentives to those who renovate and rent out empty properties at affordable prices and cracking down on seasonal rentals. In Spain just 2.5% of housing is set aside for social housing, a figure that lags drastically behind countries such as France and the Netherlands, said Sánchez.
But it was the government’s plans to crackdown on foreign, non-EU buyers that grabbed headlines around the world. Spain has long been a popular destination for non-EU holiday home buyers, with residents of the UK, US and Morocco flocking to buy properties in places such as Ibiza, Marbella and Barcelona.
