Spain proposes 100% tax on property purchases by non-EU Citizens

Key Points:.Proposal: 100% tax on non-EU home purchases to curb speculation.British, Latin American buyers impact real estate prices in key regions.New measures aim to ease Spain's housing crisis with increased home supply..Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here..The seventh BizNews Conference, BNC#7, is to be held in Hermanus from March 11 to 13, 2025. The 2025 BizNews Conference is designed to provide an excellent opportunity for members of the BizNews community to interact directly with the keynote speakers, old (and new) friends from previous BNC events – and to interact with members of the BizNews team. Register for BNC#7 here..If you prefer WhatsApp for updates, sign up to the BizNews channel here.By Rodrigo Orihuela.Spain wants non-European Union residents to pay as much as 100% tax for home purchases in the country, a move that could affect buyers from the UK and Latin America.."Just to give us an idea, in 2023 alone non-European Union residents bought some 27,000 houses and flats in Spain and they didn't do it to live in, they didn't do it for their families to live, they did it to speculate, to make money from them, which we cannot allow in the context we live," Prime Minister Pedro Sanchez said in Madrid on Monday..The government's proposal on the 100% tax on non-EU residents' house purchases will be sent to parliament, Sanchez said. The plan is inspired on tax regimes in Denmark and Canada, he added..Spain's extensive Mediterranean coastline is a popular destination for foreigners seeking a holiday residence, with the Balearic Islands one of the most popular locations. British citizens are the biggest group of non-EU property buyers..The country has for years attracted home buyers from northern EU nations and the UK, either for retirement or as a location for holiday homes in regions such as Andalusia and Valencia. But since Brexit, British citizens have to face more hurdles than their counterparts from countries such as Germany and the Netherlands..Real estate prices in some of these regions, notably the four Balearic islands, have in recent years been highly affected by a combination of short-term rentals and an increase in high-end properties, which are pricing out local residents in some cases..Madrid has also become a popular market for wealthy Latin Americans, who are snapping up property in central parts of the city and have helped push up prices across the entire capital..Sanchez's announcement Monday was part of a broader package that seeks to tackle a brewing housing crisis. The new measures include a commitment to move thousands of houses from the country's bad bank into a newly created housing agency, as well as a plan to offer state-backed financial guarantees to young renters..Spain has a severe shortage of new homes. Late last year, the Bank of Spain estimated that the country would need some 550,000 new residences to be built to meet demand over the next two years. Sanchez said on Monday that some 90,000 new houses are built annually to cover demand for 300,000..Read also:.The newly restyled Greek golden visa remains a top pick of EU residency programs🔒 This year, luxury homebuyers will look further afield for deals🔒 Foreign buyers shake up UK market with premium-driven acquisitions: Chris Hughes.© 2025 Bloomberg L.P.

Spain proposes 100% tax on property purchases by non-EU Citizens

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