Spain plans to impose a tax of up to 100 percent on properties bought by citizens of countries outside the European Union, such as the United Kingdom.
Announcing the move, Prime Minister Pedro Sanchez said the “unprecedented” measure was necessary to address the country’s housing emergency.
“The West faces a decisive challenge, which is not to become a society divided into two classes, rich landlords and poor tenants,” he said.
Non-EU residents bought 27,000 properties in Spain in 2023, he told an economic forum in Madrid, “not to live in them” but “to make money from them.” Spain is therefore planning to impose a tax of up to 100 percent on properties bought by non-residents from countries outside the EU, such as the United Kingdom.
The move is designed to “prioritize affordable homes for residents,” he said.
Sanchez did not provide details on how the tax would work or a timeline for its submission to parliament for approval, where it has often struggled to muster enough votes to pass legislation.
But his government said the proposal would be finalized “after careful study.”
It is one of a dozen planned measures announced by the prime minister on Monday to improve housing affordability in the country.
Other measures announced include tax exemptions for landlords who provide affordable housing, and stricter regulations and higher taxes on tourist accommodations.
“It is not fair that those who have three, four or five short-term rental apartments pay less tax than hotels,” he said.
