Spain proposes 100% tax on homes bought by non-EU residents
GuardianJAN 16
Spain Plans 100% Tax on Non-EU Property Buyers
Above: Pedro Sánchez speaks during the second day of the UGT Confederal Congress at the Barcelona International Convention Center on Nov. 26, 2024. Image copyright: Lorena Sopena/Contributor/Europa Press via Getty Images
The Spin
Narrative A
Spain's housing crisis demands immediate action. Speculation by foreign buyers has driven prices beyond locals' reach, while tourist rentals deplete available housing stock and create unsustainable market conditions in major cities. It must be made possible for residents to find affordable housing.
Narrative B
This proposed tax would discourage foreign investment, potentially destabilize the property market, and represent just a drop in the ocean, given that non-EU purchases account for a small fraction of Spain's 26M homes. It will also create financial uncertainty that could harm the country's real estate sector, and therefore have knock on for Spain's economy.