Spain’s government has announced plans to impose a 100% tax on real estate purchases by non-EU residents, introducing its strongest measure yet to address soaring housing costs that have sparked public discontent.
Prime Minister Pedro Sanchez revealed the tax proposal alongside eleven other housing measures, citing data showing non-EU residents purchased approximately 27,000 Spanish properties in 2023, primarily for speculative purposes.
“They didn’t do it to live in them, they didn’t do it for their families to have a place to live, they did it to speculate, to make money from them, which we — in the context of shortage that we are in — obviously cannot allow,” Sanchez told an economic forum in Madrid.
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The proposed tax would affect buyers from countries including the United States, United Kingdom, and Morocco, who have traditionally invested heavily in popular locations such as Barcelona, Ibiza, and Marbella.
Additional measures include expanding Spain’s social housing stock, which currently stands at 2.5% compared to higher rates in France and the Netherlands. The government also plans to offer incentives for renovating and renting empty properties at affordable prices.
The package targets the short-term rental market, with Sanchez announcing increased taxation on tourist apartments. “It is not fair that those who own three, four, five apartments for short-term rental pay less tax than hotels,” he said.
Implementation details and timelines remain unclear, with analysts questioning whether the legislation will pass given the government’s previous difficulties in enacting major reforms.
The announcement comes as European housing prices have surged 48% in the past decade, outpacing household income growth. Sanchez warned against society splitting into “rich landlords and poor tenants.”
Spain’s tourism sector, a crucial economic driver, could face a significant impact from the measures, particularly in regions popular with foreign buyers.
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