Spain Proposes 100% Tax on Non-EU Real Estate Buyers Amid Housing Crisis

January 14, 2025 - 14:23

Spanish Prime Minister Pedro Sanchez has unveiled a controversial initiative aimed at imposing a tax of up to 100 percent on real estate purchases made by non-residents from outside the European Union. This bold move comes as Spain grapples with a significant housing crisis, characterized by soaring property prices and a growing shortage of affordable housing options for locals.

The proposed tax is part of a broader strategy to address the challenges faced by the Spanish housing market, which has seen an influx of foreign buyers driving up prices in popular areas. Sanchez emphasized that the goal of this measure is to protect the interests of Spanish citizens and ensure that housing remains accessible to those who live and work in the country.

The plan has sparked a heated debate, with proponents arguing that it will help curb speculative investments and prioritize the needs of residents. Critics, however, warn that such a high tax could deter foreign investment and further complicate the already strained real estate market. As discussions continue, the implications of this proposal could reshape the landscape of property ownership in Spain.