Spain is bracing for a steep new property tax on home purchases by foreign citizens from outside the European Union. Prime Minister Pedro Sánchez has unveiled a plan that could force non-EU buyers to pay as much as 100% tax when they acquire real estate in the country.
Many observers see this as an attempt to fix a growing housing crunch. Prices keep climbing, and many Spaniards can’t keep up, especially in places like the Balearic Islands and along the southern coast. Officials point fingers at wealthy buyers who snap up vacation properties without much regard for local housing needs.
Sánchez notes that in the past year, about 27,000 homes were bought by non-EU citizens. In his view, most of those deals were driven by speculation. Critics argue that 27,000 is a small number in a property market with millions of homes.
The proposal has sparked debate among lawmakers. Sánchez’s government has struggled to get enough votes for various reforms in the past, so it’s uncertain whether this plan will pass. Some in the real estate sector warn that the mere suggestion could deter investors. Others aren’t sure if the measure is more about sending a signal than actually becoming law.
Regardless, the announcement has grabbed attention worldwide. Spain, a favored spot for British, American, and Latin American buyers, might see demand cool if this tax is approved. Some worry it could also slow home construction and make the overall market unstable.
The government has other measures in mind, too. Plans include boosting affordable rentals, shifting thousands of state-owned homes into a new housing agency, and tightening rules for holiday rentals. Officials insist these steps are vital to narrow the gap between soaring house prices and stagnant wages.
Sánchez remains firm. He warns that if housing costs keep surging, the social divide will worsen. A few skeptics suspect it’s mostly political theater, though others sense a real drive to confront what the prime minister calls an “unbearable” mismatch between prices and incomes.
For now, non-EU buyers are in limbo. Spain’s parliament will eventually vote, determining how far the country will go to curb property speculation.