Spain Proposes 100% Tax on Non-EU Property Buyers to Address Housing Crisis

Prime Minister Pedro Sánchez's controversial measure aims to curb housing speculation but faces criticism over its potential effectiveness.

Spain’s Prime Minister Pedro Sánchez has proposed a 100% tax on property purchases by non-EU nationals without residency in an effort to tackle the country’s housing affordability crisis.
The proposal comes as property prices in Spain have surged by 9% in 2024, with rents in cities like Madrid and Barcelona increasing by over 25% in the past five years.
Critics argue the measure may not significantly address housing shortages, as foreign speculators represent a small percentage of the market and transaction costs in Spain are already high.
Foreign demand for Spanish property remains strong, with non-resident buyers, particularly from the UK, Germany, and France, accounting for nearly 20% of home purchases in 2024.
Similar measures to limit foreign property ownership have been implemented globally, with varying degrees of success, including taxes in Singapore, Canada, and restrictions in Switzerland and Denmark.