An IMGW News Report
Spain is preparing to introduce a tax of up to 100% on properties purchased by non-EU residents, including Britons. Prime Minister Pedro Sánchez described the measure as “unprecedented” and vital for tackling the country’s housing crisis.
“The West faces a decisive challenge: to avoid becoming a society divided into two classes – rich landlords and poor tenants.”
Speaking at an economic forum in Madrid, Sánchez stated, “The West faces a decisive challenge: to avoid becoming a society divided into two classes – rich landlords and poor tenants.” He pointed out that 27,000 properties were acquired in 2023 by non-EU residents, largely for investment purposes rather than as homes. “In the current housing shortage, this is clearly unsustainable,” he added.
The proposed tax is intended to prioritise housing availability for residents. However, Sánchez did not provide specifics about the tax’s implementation or a timeline for presenting it to parliament. His government assured that the plan would undergo a thorough evaluation. Sánchez’s minority administration has often faced difficulties in securing sufficient parliamentary support for legislation.
This measure is part of a wider set of reforms aimed at improving housing affordability. Among other initiatives, Sánchez announced tax incentives for landlords offering affordable rents, tighter regulations and increased taxes on tourist flats, and the transfer of more than 3,000 properties to a newly established public housing authority.
Sánchez criticised the current tax framework for short-term rentals, stating, “It isn’t fair that those with three, four, or five apartments as short-term rentals pay less tax than hotels.”
The proposed reforms are a response to increasing public pressure to address the country’s soaring housing costs and acute shortage of affordable homes. While the government emphasises the urgency of these measures, concerns persist about their feasibility and potential impact on Spain’s property market.
The proposed tax on non-EU property buyers is expected to draw significant scrutiny, particularly from foreign investors and expatriates. Nevertheless, Sánchez argued that bold action is necessary to ensure Spain’s housing market serves residents rather than speculative interests.
If you’re interested in learning more about Spain and its approach to Investment Migration, we recommend the following IMGW News articles:
- Final Countdown: Spain’s Golden Visa Programme Ends on April 3, 2025
- After Netting Over €5B, Spain Axes the Real Estate Route to Citizenship
