Brits looking to buy a property in Spain may need to reconsider their plans in light of the announcement made by the country’s socialist Prime Minister.
In a bid to tackle Spain’s housing crisis, Pedro Sánchez announced earlier this month plans to impose a 100% tax on property purchases by non-EU residents, or a potential outright ban on sales.
Mr Sánchez hit out at non-EU buyers, labelling them as “speculators” who were out “just to make money”.
The harsh crackdown follows a wave of anti-tourism protests by locals in response to issues activists believe are being exacerbated by overtourism – including a lack of affordable housing. Many residents have blamed foreigners for purchasing homes needed by locals.
On January 19, the socialist leader said: “We will propose to ban these non-EU foreigners who are not residents, and their relatives, from buying houses in our country since they only do so to speculate.”
One estate agent has claimed that Spain’s hard stance against non-EU property owners meant it was “shooting itself in the foot”.
Mark Stücklin, founder of Spanish Property Insight, echoed this, believing the government is diverting the attention from the real causes of the country’s housing crisis, appealing to Mr Sánchez’s far-Left coalition partners, in a move he describes as “posturing political theatre”.
Mr Stücklin said: “It’s scapegoating foreigners who are the only group that can’t vote in Spain. Foreign property buyers have a financial stake but no political stake, so they’re an easy target for a bully to pick on.”
As reported by GN News, he continued to explain how the 100% tax or complete ban would be a “catastrophe” for local housing markets in tourist areas of Spain.
“Non-resident, non-EU buyers make a massive contribution to the Spanish economy, through tax and investment, in spending on white goods and maintenance.”
“It’s incoherent. These people spend money, pay VAT. There is zero upside,” Mr Stücklin added.
According to the Spanish Council of Notaries, non-EU residents accounted for just 8,476 of the 350,202 sales recorded in the first half of 2024, equating to 2.4% of sales.
Estate agent Mohammad Butt said: “Foreign buyers bring a huge level of investment. They pay tax on the purchase, then typically rent properties out when they’re not living there, and the rent is taxed. Then they pay capital gains when they sell.”
Mr Butt added: “Spain has successfully positioned itself as a tourist destination. It’s short-sighted to say ‘we don’t want this revenue’ when there’s no way to replace it.”
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