Spain plans 100% tax for homes bought by non-EU residents

Spain is planning to impose a tax of up to 100% on goods bought by non-residents of countries outside the EU, such as the UK.

In announcing the move, Prime Minister Pedro Sánchez said an “unprecedented” measure was needed to meet the country’s emergency situation.

“Whites are facing a big problem: Not to be a society divided into two groups, rich landlords and poor renters,” he said.

Non-EU citizens will buy 27,000 properties in Spain in 2023, he told an economic conference in Madrid, “not to live there” but “to make money from them”.

“Which, in the time of need that we live in, [we] obviously they won’t allow it,” he added.

The move was designed to “lead[ise] that the existing buildings belong to the people,” he said.

Sánchez did not elaborate on how the tax would work or when it would be submitted to parliament for approval, where it often struggles to get enough votes to enact legislation.

But his government said the proposal would be finalized after “careful study”.

This is one of the twelve 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, the transfer of more than 3,000 homes to a new public agency, and stricter regulations and higher taxes on tourist accommodation.

“It is not good that those who have three, four or five houses as short-term rentals pay less tax than hotels,” he said.