Foreign Buyers Face 100% Tax on Spanish Properties

In a sweeping bid to reclaim its housing market for locals, Spain has unveiled a groundbreaking proposal: a 100% tax on property purchases by non-EU buyers. Prime Minister Pedro Sánchez announced the measure as part of an urgent response to a housing crisis he called “grave,” framing it as a battle to prevent society from splitting into landlords and tenants—a stark divide where wealth dictates shelter.

For decades, Spain has lured foreign buyers seeking sun-drenched escapes, transforming its coastline and cities into prime real estate hubs. But as prices soar and new construction falters, many Spaniards are left struggling to afford a home. The proposal targets non-EU citizens—British investors among them, now outside the bloc post-Brexit—who Sánchez said are “mainly buying for speculation.”

The tax, which would effectively double property costs for foreign buyers, marks a sharp departure from Spain’s open-door approach to global investors. Yet critics argue the measure might barely ripple the market, given that foreign purchases constitute a fraction of Spain’s 26 million homes. Instead, they warn, the move risks driving away investment at a time when the country needs stability.

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Sánchez’s plan, which also includes tighter regulations on short-term rentals, a public housing expansion, and incentives for affordable rentals, reflects a broader reckoning sweeping Europe. House prices across the continent have outpaced incomes at alarming rates, pushing governments to confront the widening gap between those who own and those who rent.

While the proposal faces a long road to parliamentary approval, it signals Spain’s intent to wrestle its housing future back from global speculators. For millions of Spaniards watching homeownership drift further out of reach, this could be a turning point—or merely a bold but fleeting gesture.

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