Spain plans to impose a tax of up to 100% on properties purchased by non-residents from countries outside the European Union, such as the UK.
Announcing the move, Prime Minister Pedro Sanchez said the “unprecedented” measure was necessary to confront the country’s housing emergency.
He said, “The West faces a critical challenge: not to become a society divided into two classes: the rich landlords and the poor tenants.”
Non-EU residents bought 27,000 properties in Spain in 2023, “not to live in” but “to make money from,” he told an economic forum in Madrid.
He added, “This is something we cannot allow in light of the shortage we are experiencing.”
He added that this step aims to “give priority to the available homes being allocated to residents.”
Sanchez did not provide details on how the tax would work nor a timeline for bringing it to Parliament for approval, as he has often faced difficulties in gathering enough votes to pass legislation.
But his government said the proposal would be finalized “after careful consideration.”
This is one of ten planned measures announced by the Prime Minister on Monday aimed at improving housing affordability in the country.
Other measures announced include a tax break for landlords who provide affordable housing, the transfer of more than 3,000 homes to a new public housing authority, tightening regulations and increasing taxes on tourist apartments.
“It is not fair that those who own three, four or five apartments for short-term rental should pay less in taxes than hotels,” he said.
