Spain

Spain Plans 100% Tax on Non-EU Property Buyers

JAN 14 2025·Updated JAN 15 2025

Story

Above: Pedro Sánchez speaks during the second day of the UGT Confederal Congress at the Barcelona International Convention Center on Nov. 26, 2024. Image credit: Lorena Sopena/Contributor/Europa Press via Getty Images

The Facts

Spain's Prime Minister Pedro Sánchez on Monday announced plans to impose a tax of up to 100% on property purchases by non-EU residents, who reportedly bought approximately 27K properties in 2023. The move comes as part of a broader housing affordability initiative in the nation.
www.ft.com
BBC News
The proposal is part of a 12-measure package that includes transferring 3.3K homes to a public housing body, increasing taxes on tourist rentals, and offering incentives for affordable housing rentals.
Catalan News
It also comes after months of local protests against overtourism in Spain's tourist hotspots, including Barcelona. According to Spain's National Statistics Institute, Spain received 10.9M international tourists last August — a 7% year-on-year increase from the same month in 2023.
CNBC
Thediplomatinspain.Com
British citizens — who represent the largest group of non-EU buyers at 8.5% of all foreign property transactions — would be significantly impacted by this measure, which would add to the existing property purchase taxes of between 7% and 12%.
www.ft.com
Housing prices in Europe have surged 48% over the past decade, outpacing household income growth and creating what Sánchez has described as an "unbearable" situation for local residents.
guardian
Spain maintains 2.5% of its accommodation as social housing, significantly lower than other European countries like France and the Netherlands. Approximately 3.8M properties in the country remain empty, representing 14% of Spain's housing stock.
The Telegraph
Euractiv

Sources Split

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The Spin

Narrative A

Spain's housing crisis demands immediate action. Speculation by foreign buyers has driven prices beyond locals' reach, while tourist rentals deplete available housing stock and create unsustainable market conditions in major cities. It must be made possible for residents to find affordable housing.

The Associated Press

TheJournal.ie

Narrative B

This proposed tax would discourage foreign investment, potentially destabilize the property market, and represent just a drop in the ocean, given that non-EU purchases account for a small fraction of Spain's 26M homes. It will also create financial uncertainty that could harm the country's real estate sector, and therefore have knock on for Spain's economy.