Why is Spain considering a 100% tax on homes bought by non-EU residents?
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Spain is planning a raft of measures to address its brewing housing crisis, including an up to 100% tax on properties that non-European Union residents buy. Spanish Prime Minister Pedro Sánchez announced the plan this week which will tackle housing affordability and high rents in the Southern European nation. He said the overall goal was to provide “more housing, better regulation and greater aid.”.
However, it remains unclear if the plan put forth by Sánchez’s minority coalition would pass in Parliament. Here's a look at what's happening:. Spain's housing affordability crisis. Like most rich countries, Spain is in the throes of a growing housing affordability problem. Skyrocketing rents are particularly acute in cities like Barcelona and Madrid, where incomes have failed to keep up, especially for young people. Housing prices are also steadily rising, especially in cities and coastal areas.
Rental prices have also been driven up by short-term rentals mainly offered for tourists. Spain receives more tourists than almost any country in the world with more than 88.5 million people having visited the country in 2024. The negative side to tourism, or “overtourism,” has at times sparked tension between visitors and residents concerned about rising rental prices, the proliferation of short-term rentals on platforms, like AirBnB, and water supplies that can be stretched in some parts of the country, including the popular Canary and Balearic islands.
Last year, protestors took to the streets on various occasions across the country to raise concerns about the growth of tourism and high rental prices. Barcelona’s town hall has pledged to completely eliminate all short-term rentals to tourists in the coming years.
