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3mo ago

Spain Proposes 100% Tax and Ban on Non-EU Homebuyers to Address Housing Crisis

Prime Minister Pedro Sánchez introduces measures to curb foreign property purchases, citing rising housing costs and overtourism as key challenges.

Photo collage of three Monopoly houses, each taller than the last, like rising arrows, on top of the cut-out shape of Spain, overlaid with holiday umbrellas.
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Soaring property prices and a lack of housing has angered residents in Spain

Overview

  • Spain's government has proposed a 100% tax on property purchases by non-EU residents who are not living in the country, aiming to prioritize housing for Spanish residents.
  • Prime Minister Pedro Sánchez has also suggested a potential ban on non-EU foreigners, including Britons, from buying homes in Spain, though this would require parliamentary approval.
  • The measures are part of a broader strategy to address Spain's housing shortage, exacerbated by overtourism, short-term rentals, and rising property prices in urban and coastal areas.
  • Critics argue that foreign buyers, who account for a small percentage of total transactions, are not the primary cause of the housing crisis and that these policies may have limited impact on affordability.
  • The proposals have drawn comparisons to similar policies in Canada and Denmark, but concerns have been raised about potential damage to Spain's reputation among foreign investors and expatriates.