Spanish authorities are planning to introduce a 100% tax on real estate purchases for non-EU residents. This measure is part of a plan presented by Prime Minister Pedro Sanchez aimed at overcoming the housing crisis and ensuring the availability of housing for local residents, the Financial Times reports.
The head of government said that EU non-residents annually buy 27 thousand residential properties in Spain, mainly “for the purpose of speculation”.
Spain is one of the European countries where public discontent is growing due to difficulties in finding affordable housing for purchase or rent amid a sharp rise in real estate prices and a significant lag between new construction and demand.
Over the past 10 years, housing prices in Europe have jumped by 48%, which is about twice the growth in household income over the same period, Sanchez said.
Spanish real estate is in high demand among people who buy vacation homes or want to move to a country with a warmer climate.
Such purchases are already subject to a number of taxes, the amount of which depends on the region and whether the transaction is on the primary or secondary market. In total, these taxes range from 7% to 12%.
Other measures proposed by the government include the transfer of more than 3,300 houses and approximately 200 hectares of land to a new state-owned company for the construction of social housing, stricter regulation of seasonal rentals, the restoration of empty buildings, and the provision of incentives to homeowners who rent out their homes at affordable prices.
