Spain is set to introduce a tax of up to 100% on properties purchased by non-residents from countries outside the EU, including the UK.
Prime Minister Pedro Sánchez announced the proposal, calling it an “unprecedented” measure to address Spain’s housing crisis. Speaking at an economic forum in Madrid, Sánchez stressed the need to avoid a societal divide between
“rich landlords and poor tenants.”
He revealed that non-EU residents bought 27,000 properties in Spain during 2023, often for profit rather than personal use.
“In the current housing shortage, this is something we obviously cannot allow,” Sánchez said. The tax is designed to ensure that available housing benefits residents rather than speculative investors.
While Sánchez did not detail how the tax would be implemented or provide a timeline for its introduction to parliament, he stated that the proposal would undergo “careful study.” His government has faced challenges securing legislative approval in the past, and some analysts suggest the announcement may be aimed at deterring foreign investors through uncertainty.
This tax is part of a broader package of housing reforms unveiled by Sánchez, including tax exemptions for landlords offering affordable housing, the transfer of over 3,000 homes to a public housing body, and stricter regulations and higher taxes on short-term tourist rentals.
Sánchez emphasised that tourist flats have contributed to reduced rental availability and unaffordable housing for locals. It isn’t fair that those with three, four, or five short-term rental apartments pay less tax than hotels,” he said.
The proposal to tax non-EU buyers has drawn significant international attention, as Spain has long been a favourite destination for foreign holiday home purchases, especially among UK, US, and Moroccan residents. Sánchez characterised the move as historic, reiterating that speculative buying in the midst of a housing shortage could no longer be tolerated.