Overview

• The Spanish government has formally presented a housing bill to Parliament, proposing a 100% tax on property purchases by non-EU residents to curb speculation and free up housing for locals.
• The bill also includes measures such as increasing VAT on short-term rentals to 21%, raising taxes on real estate investment trusts, and imposing levies on vacant properties.
• Exemptions are outlined for EU citizens, foreign businesspeople, and professional workers based in Spain, shielding certain expats from the proposed tax.
• Enforcement of housing reforms has already begun, with Spain's Consumer Rights Ministry ordering the removal of over 65,000 unlicensed Airbnb listings to combat illegal holiday rentals.
• Prime Minister Pedro Sánchez’s minority coalition government faces significant hurdles in passing the bill, requiring support from approximately eight parties in a divided Parliament.