Spain is considering imposing a 100% tax on property purchases made by non-European Union residents to address its severe housing shortage. The move aims to reduce speculation and make it more expensive for foreign investors to buy homes, freeing up housing for Spaniards.
The proposal was unveiled by Prime Minister Pedro Sánchez, who said that the West faces a challenge of dividing into two classes: wealthy landlords and poor tenants. Non-EU residents bought 27,000 homes in 2023, mostly to speculate on profits, which Sánchez claimed cannot be allowed.
Spain’s housing shortage is acute, with the central bank predicting a need for 550,000 new homes over the next two years. House prices have soared 48% in the last decade, driven by new developments, urban centers, and tourist areas.
Tourism is also a factor, as the industry drives the economy but has become contentious due to landlords cashing in on lucrative visitors at the expense of local tenants. Cities such as Valencia and Barcelona have cracked down on short-term rentals, and the country is investigating Airbnb and Booking.com over outdated listings that inflate prices.
The housing crisis has led to protests across the country and increased anti-tourism sentiment. Sánchez said that the problem requires a decisive response from society, with public institutions at the forefront. The proposal aims to address this by making it more expensive for non-EU residents to buy homes, which could help alleviate the shortage.
Source: https://fortune.com/europe/2025/01/14/spain-housing-crisis-property-taxes-non-eu-residents