Government comes up with plan to tackle Spain's housing crisis
Spain proposes 100% tax on homes bought by non-EU residents
Pedro Sánchez announces measure in response to anger over rising housing costs
Spain has announced plans to impose a tax of up to 100% on real estate bought by non-residents from countries outside the EU, such as the UK, in an aim to tackle the country’s housing crisis.
The measure was one of a dozen unveiled on Monday by the country’s prime minister, Pedro Sánchez, as the government seeks to quell mounting anger over housing costs that have soared far beyond the reach of many in Spain.
Sánchez sought to underline the global nature of the challenge, citing housing prices that had swelled 48% in the past decade across Europe, far outpacing household incomes.
“The west faces a decisive challenge: to not become a society divided into two classes, the rich landlords and poor tenants,” he told an economic forum in Madrid.
The proposed measures include expanding the supply of social housing, offering incentives to those who renovate and rent out empty properties at affordable prices and cracking down on seasonal rentals. In Spain just 2.5% of housing is set aside for social housing, a figure that lags drastically behind countries such as France and the Netherlands, said Sánchez.
But it was the government’s plans to crack down on foreign, non-EU buyers that grabbed headlines around the world. Spain has long been a popular destination for non-EU holiday home buyers, with residents of the UK, US and Morocco flocking to buy properties in places such as Ibiza, Marbella and Barcelona.
Sánchez described the tax of up to 100% as “unprecedented” in Spanish history. “Just to give an idea, in 2023 alone non-European Union residents bought around 27,000 houses and flats in Spain. And 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.”
He did not offer more details on how the plan would work or when it would be finalised and sent to parliament for approval. Given his government’s longstanding struggles to pass legislation, one analyst suggested to the Financial Times that the government’s aim was to deter foreign property investors by creating “uncertainty and noise” with a proposal that has slim chances of becoming law.
The government’s slate of measures also took aim at tourist flats, which have long been blamed for shrinking the rental supply and leaving locals priced out of the market.
Sánchez said regulations on these rentals would be tightened while the taxes they pay would be hiked. “It is not fair that those who own three, four, five apartments for short-term rental pay less tax than hotels,” said Sánchez.
He argued that the measures were necessary to tackle what he described as an “unbearable” mismatch between rising housing prices and household incomes.
“We are facing a serious problem, with enormous social and economic implications, which requires a decisive response from society as a whole, with public institutions at the forefront,” he added.
Spain plans 100% tax for homes bought by non-EU residents Source: BBC News
Comments
The prime minister of Spain, Pedro Sánchez, has announced dozen measures to takle the country´s housing crisis. Among them he said:
1.- Imposing a tax of up to 100 per cent for people non-residents outside of EU, who buy houses in Spain.
2.- Expanding the supply of social housing.
3.- Offering incentives to those who renovate their house.
4.- Offering incentives to those who rent out their empty properties at affordable prices.
5.- Craking down on seasonal rentals.
6.- Slating measures agains the tourist flats.
These measures were announced on Monday 13 January 2025 and, today, we are going to check if Mr. Sánchez has fulfiled some of them:
1.- He didn´t impose anytax for non-resident.
2.- His government doesn´t have built any social housing.
3.- Mr. Sánchez doesn´t offer any incentive to renovate houses.
4.- The President of Government´s Spain doesn´t have given any help to rent houses.
5.- Another measure which doesn´t have been fulfiled.
6.- Neither, he doesn´t adopted measures agains the tourist flats. Thes have increase 17 per 100 and until the lack of measures, the Supreme Court has claimed that the Community of owners can ban tourist flats.
On the contrary, The Community of Madrid, that is, Ms. Ayuso whether has built some social housing.
The President said that Spanish society is divided in two classes. It´s true, he has created the polarization. As I don´t understand about politics, perhaps I have making a big mistake, for this razon I don´t like to speak about politics.
See you.
It's been two months since the PM made this announcement. I don't know how long it takes between announcing a policy and it becoming law but I'd imagine that it requires more time. Give him the benefit of doubt. It may turn out that you are right and this announcement was yet more empty words.
The Prime Minister of Spain, Pedro Sánchez, has announced a dozen measures to tackle the country’s housing crisis. Among them, he mentioned:
1. Imposing a tax of up to 100% on non-residents from outside the EU who buy property in Spain.
2. Expanding the supply of social housing.
3. Offering incentives to those who renovate their homes.
4. Providing incentives for homeowners to rent out empty properties at affordable prices.
5. Cracking down on seasonal rentals.
6. Implementing measures against tourist flats.
These measures were announced on Monday, January 13, 2025. Today, we are going to check whether Mr. Sánchez has fulfilled any of them:
1. He has not imposed any tax on non-residents.
2. His government has not built any social housing.
3. Mr. Sánchez has not offered any incentives for home renovations.
4. The Spanish government has not provided any assistance for renting properties.
5. Yet another measurewhich has not been fulfilled.
6. Nor has he taken action against tourist flats. In fact, the number of tourist flats has increased by 17%. Due to the lack of measures, the Supreme Court has ruled that community property owners can ban tourist flats.
On the other hand, the Community of Madrid, led by Ms. Ayuso, has built some social housing.
The President said that Spanish society is divided into two classes. This may be true, as he has contributed to political polarisation. Since I don’t understand much about politics, perhaps I am making a big mistake, which is why I don’t like to talk about it.