In a daring transfer to fight its worsening housing disaster, Spain has proposed a 100% tax on property purchases by non-EU residents who don’t reside within the EU.
The measure, introduced by Prime Minister Pedro Sánchez, goals to curb international actual property investments which can be driving up housing prices and limiting availability for locals.
“We can’t enable speculative purchases to deepen the housing disaster. This measure is about making certain properties are for individuals, not only for revenue,” Sánchez stated throughout a press convention unveiling the proposal.
The tax, which would require parliamentary approval, is a part of a broader package deal of 12 initiatives designed to deal with housing affordability. Spain’s authorities has confronted mounting strain to behave as property costs proceed to outpace earnings development, leaving many voters unable to purchase or lease properties.
If applied, the tax may considerably influence British consumers, who signify a big share of Spain’s international property market following Brexit. Critics argue the transfer may deter international funding, however supporters see it as a mandatory step to guard the home housing market.
“It is a vital step towards decreasing inequality and prioritizing housing as a basic proper,” Sánchez added.
The proposal’s approval stays unsure, with Sánchez’s coalition dealing with challenges in securing a parliamentary majority.
Spain’s Rental Market Reaches Document Highs in 2024
Spain’s rental costs surged by an unprecedented 11.5% in 2024, reaching file ranges by the tip of the yr, in keeping with latest knowledge.
The rise has additional strained affordability for locals, notably in main city facilities like Madrid and Barcelona, the place demand continues to outstrip provide.
Consultants attribute the sharp rise to restricted housing availability, elevated tourism, and heightened curiosity from international traders, all of which have intensified competitors within the rental market.