Spain is set to introduce a controversial tax of up to 100% on properties acquired by non-residents from outside the EU, including the UK.
In a recent announcement, Prime Minister Pedro Sánchez described this unprecedented tax measure as essential for addressing the country’s ongoing housing crisis. “The West faces a decisive challenge: to avoid a society divided into two classes — the wealthy landlords and struggling tenants,” Sánchez emphasized.
In 2023, non-EU residents purchased an impressive 27,000 properties in Spain, largely as investment opportunities rather than for personal residence, according to Sánchez during an economic forum in Madrid. This trend, he noted, is unsustainable in light of the current housing shortage.
To combat this issue, the proposed tax aims to ensure that homes are prioritized for residents, promoting local living conditions. While Sánchez did not elaborate on the specifics of the tax implementation or a timeline for parliamentary discussion—where he often faces challenges in securing sufficient votes—his administration assured that the initiative would undergo careful consideration.
This tax is part of a broader strategy announced by Sánchez, which includes various measures to enhance housing affordability across Spain. Additional initiatives consist of tax exemptions for landlords who commit to providing affordable housing, the transfer of over 3,000 units to a new public housing agency, and stricter regulations alongside increased taxes on tourist accommodations. The Prime Minister expressed concern over the disparity in taxation between short-term rental properties and traditional hotels, asserting that it is unjust for owners of multiple rental units to face lower tax rates.
