Spain to impose up to 100% tax on non-resident housebuyers from UK and other non-EU countries
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Spain is planning to impose a 100 per cent tax on properties brought for buyers from non-EU countries such as the UK as residents of the country's cities grapple with soaring rents. Prime Minister Pedro Sanchez announced on Monday the plan for the property tax as part of a number of measures to tackle Spain’s housing crisis.
The southern European nation also plans to raise taxes on holiday rentals so that they pay "like a business", Mr Sanchez also announced. "It isn't fair that those who have three, four or five apartments as short-term rentals pay less tax than hotels or workers," Mr Sanchez said at an event on affordable housing.
The measure would be based on a new European Union directive on value-added tax for digital platforms, he said. Spanish hotels now pay a reduced 10 per cent VAT rate, which is included in the bill. Housing has become a major issue in Spain as it struggles to balance needed tourism with concerns over high rents due to gentrification and landlords shifting to more lucrative, short-term tourist rentals, especially in desirable city and coastal areas.
Mr Sanchez also promised tougher measures to combat fraud around such rentals, without going into details. Last month, authorities opened an investigation into Airbnb for failing to delete thousands of misleading rental offers from its platform. Landlords in high-rent areas who keep their rents in line with an official price index will get a 100 per cent tax exemption on that income.
