Related news: Is this the end

Spanish Prime Minister, Pedro Sanchez, may have shattered the dreams of thousands of Britons who had long thought about owning a holiday property in Spain. On Monday Sanchez announced plans to tax non-resident/non-European Union citizens, if they bought a home in Spain . The tax rate could be up to 100 percent.

It is part of a new housing plan announced by the Prime Minister which aims t o free-up more houses for Spaniards . But it also effectively ended the dream of many Britons. The 90 day rule, which means that non-European Union citizens (not resident in Spain) can only spend six months of the year in Spain (in two batches of 90 days) and now the new housing law has effectively dealt a hammer blow to many Britons and their future plans.

Sanchez's politicial opponents said the proposed taxwas "xenophobic" and they would not apply the levy in the regions where they govern which includes the Balearics.

"The problem is not that people want to live in Spain, the problem is that there is a lack of housing," said Luis de la Matta, director of communications of the Partido Popular (PP). "We are not going to facilitate a xenophobic measure". Real estate agents contacted by Bulletin online today have slammed the new law as being "silly" and also indicated that Sanchez would have a major problem getting the new law approved by parliament. "He promises plenty but delivers little," said one.

"Perhaps now is the time to buy before the introduction of the law if its is approved," he added. Sales of homes to non resident Britons in the Balearics are small but this is not the case on the mainland with the British still being the Number 1 market for Spanish properties amongst foreigners.

The Balearics had at one stage looked at legislation aimed at curbing the sale of properties to foreigners but the idea was shelved. The government has taken this idea to another level directly penalising non-European Union property buyers.

New housing measures presented by PM Sanchez

Let's get to work’. This is how the President of the Government, Pedro Sánchez, concluded his presentation of the 12 measures to facilitate access to housing in Spain.

1. The State has transferred more than 3,300 homes and almost 2 million square metres of residential land to the recently created Public Housing Company, to build thousands of protected flats for affordable rent.

2. Throughout the first half of the year, the Public Housing Company will begin to incorporate the more than 30,000 homes currently held by SAREB, 13,000 of them immediately.

3. It is intended to approve a legal mechanism so that the new Public Housing Company will have priority in the purchase of housing and land, and another to guarantee that all housing built by the State will remain in public ownership indefinitely.

4. The purchase of housing by non-resident non-EU foreigners will be limited, which will be done by increasing the tax burden to 100% of the value of the property.

5. The regulation will be tightened to prosecute fraud in seasonal rentals and a fund will be created so that regional and municipal governments can reinforce inspections.

6. Tax reform will also be taken to Congress to ensure that tourist flats are taxed as a business, promoting, within the framework of the new European directive on VAT, the application of a tax on tourist rentals that puts them on a par with other economic activities.

7. In addition, the aim is to change the system of tax advantages that SOCIMIS have so that they only apply to the promotion of affordable rental housing.

8. A system of public guarantees will be applied to protect owners and tenants who participate in affordable rentals.

9. An aid programme will be set up for the rehabilitation of empty homes to make them available for affordable rent.

10. The Government will propose to the Congress of Deputies the approval of a 100% personal income tax exemption for homeowners who rent their homes according to the Reference Price Index, without the need for them to be located in areas declared to be under stress.

11. The Government will create a new Strategic Project of the Recovery Plan (PERTE) aimed at boosting innovation and modernisation of the industrialised and modular construction sector. It will be located in the province of Valencia to contribute to the reconstruction of the economic fabric affected by the dana.

12. Maintain and increase the aid programmes that will be included in a new State Housing Plan.

Foreign property buyers in Spain British........ 8.37 percent Germans......6.8 percent Morrocans.....6.1 percent omanians.....5.3 percent French...........5.2 percent Italians..........5.1 percent Dutch............. 5.1 Belgiums........4.6

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