An IMGW News Report
Spanish Prime Minister Pedro Sánchez has unveiled a bold proposal to ban non-EU nationals from purchasing properties in Spain unless they or their families reside in the country. The measure, part of a broader strategy to address Spain’s housing crisis, reflects growing concerns over foreign property speculation and its impact on affordability for local residents.
“This type of investment puts a lot of stress on the market, increases the price of houses, and encourages speculation. The government’s objective is to put an end to this.”
In 2023, non-EU buyers acquired nearly 23,000 homes in Spain, a trend Sánchez attributes to rising property prices and reduced housing availability. Speaking on January 20, he reiterated his government’s commitment to making housing a fundamental right, not a commodity for speculation.
“The West faces a decisive challenge: to avoid becoming a society of rich landlords and poor tenants,” Sánchez stated, warning against unchecked property speculation. He also proposed imposing a 100% tax on properties purchased by non-EU nationals as a deterrent.
End of Spain’s Golden Visa Programme
This announcement follows Spain’s decision to terminate its Golden Visa Programme, which has long been criticised for exacerbating the housing crisis. Under the programme, launched in 2013, wealthy non-EU nationals could obtain residency by investing at least €500,000 in Spanish property. The initiative contributed significantly to the economy, with applicants investing an average of €657,204 in 2024 alone.
However, critics argue the scheme inflated property prices and reduced housing affordability for local residents. Housing Minister Isabel Rodríguez highlighted this concern in 2024, stating, “This type of investment puts a lot of stress on the market, increases the price of houses, and encourages speculation. The government’s objective is to put an end to this.”
On December 14, 2024, Spain’s Congress of Deputies passed legislation to abolish the Golden Visa Programme, which will officially end on April 3, 2025, as published in the Official State Gazette on January 3, 2025.
EU-Wide Implications
Sánchez’s proposals resonate with broader European efforts to curb housing speculation and align with EU recommendations on regulating Investment Migration schemes. Spain’s measures also mirror the European Commission’s ongoing scrutiny of Malta’s Citizenship by Investment (CBI) Programme, further highlighting tensions between national sovereignty and EU oversight.
As Spain prepares to implement these housing reforms, Sánchez’s proposals underscore a growing trend among EU nations to prioritise housing affordability over economic gains from foreign investment.
