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!
