Spanish Prime Minister Pedro Sánchez yesterday proposed taxes of up to 100% for non-resident non-EU foreigners who purchase properties in Spain, as one of several measures intended to address the housing crisis.
Sánchez told an economic forum in Madrid that non-EU residents bought 27,000 properties in Spain in 2023, “not to live in” but “to make money from them”.
“In the context of the shortage that we are in, this obviously cannot be allowed,” he added.
Other measures include an exemption from personal income tax for landlords who rent out properties according to the newly-published Price Reference Index; further incentives for those who offer private rentals and the transfer of thousands of properties to the new Public Housing Company.
Tighter regulations and higher taxes on holiday rental properties were also among his proposals.
However, Sánchez did not propose a timescale for the new legislation, and many of his proposals are likely to face strong opposition in Spain’s parliament.