Spain proposes 100% tax on property purchases by non-EU residents

Non-EU residents, including UK citizens, may face a tax of up to 100% when purchasing property in Spain, with the Spanish government planning on implementing such measures.

Prime Minister Pedro Sánchez said that the “unprecedented” regulations is a necessary step in tackling the nation’s housing crisis.

Sanchez was keen to emphasise that this is a global issue, citing housing prices that had swelled 48% in the past decade across Europe.

Sanchez said to an economic forum in Madrid: “The west faces a decisive challenge: to not become a society divided into two classes, the rich landlords and poor tenants.”

He also revealed that over 27,000 properties in Spain were bought by non-EU residents in 2023 “not to live in but to speculate and make money from.”

Specific details of how the tax would work were not disclosed nor was a timeline for when this could officially be in place but his government said the proposal would be finalised "after careful study".

This tax proposal was one of twelve measures announced by prime minister Sanchez on Monday as he looks to target the nation’s housing emergency and aims to make housing more affordable in the country.

These measures include the transfer of over 3,000 homes to a new public housing authority, and stricter regulations alongside increased taxes on tourist accommodations.

Sanchez said: "It isn't fair that those who have three, four or five apartments as short-term rentals pay less tax than hotels."

In Barcelona, there have been protests over soaring housing costs, prompting formal action by the government.