It’s been a week since Prime Minister Pedro Sánchez unveiled his 12-point plan to tackle Spain’s housing crisis, and here’s the headline: one of the most controversial measures proposes making it harder for non-EU foreign nationals to buy property. ????
???? What’s on the table?
The government is considering increasing taxes to up to 100% of the property’s value for this group of buyers. Options include introducing a new tax or adding surcharges to the existing property transfer tax (ITP).
???? Who’s in the spotlight?
In the first half of 2024, foreign buyers purchased 69,412 homes in Spain, accounting for 20.4% of all sales. Most of these investments are concentrated on coastal areas, attracted by quality of life and luxury properties. ????
Here’s the kicker: these purchases typically involve high-end homes that don’t compete with properties sought by local residents.
???? What are the experts saying?
Experts argue that instead of imposing taxes, the focus should be on:
✅ Encouraging the development of affordable housing
✅ Ensuring access to rentals
???? “Taxes targeting foreign buyers will damage Spain’s reputation as a welcoming and safe place to live. This measure won’t solve the housing crisis—it will only create uncertainty for a sector crucial to the economy.”
???? Who’s against it?
???? Developers: “Foreigners buy homes that don’t meet local demand. Their investments boost the economy!”
???? Banks: “Higher taxes will cool down the construction sector.”
⚖️ Legal Experts: “This could violate EU laws. Restricting capital flow contradicts European regulations.”
???? As of now, the measures are still vague, with no concrete legislative text presented by the government.
???? What do you think—will this tax help solve the housing crisis, or is it just a blow to Spain’s image? Share your thoughts below!
