Spain’s Prime Minister Pedro Sánchez has announced plans to introduce a tax of up to 100% on homes purchased by buyers outside of the European Union, in an effort to address the country’s housing crisis. The move aims to curb the trend of non-EU residents buying properties for short-term rentals on platforms like Airbnb, which is affecting local communities.
Last year, around 27,000 homes and apartments were bought by non-EU residents, many of whom plan to rent them out rather than live in them. The government fears this could exacerbate the shortage of affordable housing, leading to a divide between wealthy landlords and poor tenants.
The proposal follows similar moves from other European countries, which have seen an influx of rich foreign buyers under their “golden visa” programs. These programs allow wealthy individuals to invest in real estate to gain residency and eventually citizenship, but critics argue they have driven up prices and made housing unaffordable for locals.
Spain’s program has been particularly attractive due to its relatively low cost: $500,000 can buy a property, granting the buyer residency and the right to live, work, and study freely in the country. However, this has led to concerns about money laundering and rising housing costs.
While Spain’s new policies have not been finalized, the government is considering similar measures implemented by Canada and Denmark. Some localities have already banned short-term rentals, but more needs to be done to address the crisis. Other destinations like Greece, Costa Rica, Italy, and France are attracting American expats looking for affordable housing options.
As Spain cracks down on non-EU homebuyers, it’s unclear what other measures will be taken. For now, the focus is on tackling the housing shortage and ensuring that the benefits of immigration are shared by all.
Source: https://fortune.com/2025/01/14/spain-axes-popular-golden-visa-plans-100-tax-on-foreign-buyers-in-response-to-housing-crisis