In a daring transfer to fight the worsening housing disaster, Spain has proposed a 100% tax on property purchases by non-EU residents residing outdoors the EU.
The measure, introduced by Prime Minister Pedro Sánchez, goals to curb international actual property investments, which drive up housing prices and restrict availability for locals.
“We can’t enable speculative buying to worsen the housing disaster. This measure ought to be sure that houses are for folks, and never only for revenue,” Sánchez stated at a press convention unveiling the proposal.
The tax, which requires parliamentary approval, is a part of a broader bundle of 12 initiatives geared toward tackling housing affordability. The Spanish authorities is underneath growing stress to behave as property costs proceed to outpace revenue development, leaving many voters unable to purchase or lease houses.
If launched, the tax may have vital implications for British patrons, who characterize a big a part of Spain’s international property market post-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 essential step towards lowering inequality and prioritizing housing as a basic proper,” Sánchez added.
The proposal’s approval stays unsure as Sánchez’s coalition faces challenges in securing a parliamentary majority.
The Spanish rental market will attain report highs in 2024
In response to current information, Spanish rents rose by an unprecedented 11.5% in 2024, reaching report ranges by the tip of the yr.
The rise has put additional stress on affordability for locals, particularly in main city facilities resembling Madrid and Barcelona, the place demand continues to outstrip provide.
Specialists attribute the sharp improve to restricted housing availability, elevated tourism and elevated curiosity from international buyers, all of which have elevated competitors within the rental market.