Sanchez on January 13 unveiled a proposal to tax by up to 100% the acquisitions of property by non-EU citizens not living in Spain as part of a series of measures seeking to boost supply and reduce demand for housing in the country. A source close to Sanchez played down the suggestion of a ban, saying the plan remained to discourage these acquisitions through increased tax rates.
Either potential change would need to pass the lower house where Sanchez's minority government faces a constant struggle to pass any bill. Either way, there will be damage to Spain's reputation, said real estate company CBRE. "All factors related to regulatory and juridical changes are discouraging investors," said Paloma Relinque, CBRE's executive corporate director for Spain. Housing has become a major issue in Spain as it struggles to balance promoting tourism, a key driver of its economy, with concerns over high rents due to gentrification and landlords shifting to more lucrative, short-term tourist rentals, especially in urban and coastal areas.
The country's Central Bank recently estimated there could be a deficit of half a million houses in Spain by the end of this year. Targeting non-resident foreigner buyers, who tend to buy second homes particularly in beach resorts, would have a limited effect on the housing market as a whole, a spokesperson for real estate developer Gilmar said. Non-EU residents represent about 23,000 of the almost 700,000 homes bought and sold every year in the country, Sanchez said during the rally.
One Bulletin reader commented online: "Tell me something, there are scores of properties all across Mallorca that are totally out of the price bracket for locals. What happens to these properties should the anti-foreigner taxes be implemented and the foreigners depart for more welcoming locations? They'll just lie vacant and rot. Where's the benefit to anyone in that?"
Another wrote: "OK so with this change, what is going to happen? The germans, scandinavians and other EU neighbours will buy them! The 90 day rule has already scared away many brits from buying. This will not stop with the UK. Why not follow the lead of other countries and invest in shared ownership properties and government backed buying schemes paid for from the taxes paid on property purchases. Build more blocks of rent controlled properties or properties only available to local people with the taxes paid on holiday lets.
"I understand there is a huge problem not only for locals but for all the other tax payers that have chosen to live and work here its a problem for everybody. The tax revenue made from the sale of properties is huge as well as all of the other services gardeners, builders cleaners the revenue lost by stopping the sale of properties is huge! Also, devaluing properties is also a huge problem for the banks who have leant billions out on the housing stock in Spain. 2007 all over again?? A solution to the problem is 100% needed but this is not it." And over 65 percent of readers maintain Spain is taking the wrong approach to solving the housing problem.
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oouoo oouooSo what ? How many of them own a property ? Probably 90% of them pay rent and live mostly in a places not attractive about anyone from the people here...Spain don't need
David HollandNow Trump demands 5% to NATO. I guess it's a plausible excuse for the US to withdraw from NATO altogether.
tattooNo it won't. It means you have never been to Hong Kong!
DeanThis is not about a normal tourist. It's about buying properties which does not effect tourism as such.
oouoo oouooYou obviously belong to the Trump 'alternative facts' school. According to CIS in January 2025 - 42% think that Sanchez is the best leader the Spain. The next most popular is the PP leader with 17%. But hey, don't let your prejudice get in the way! https://www.cis.es/documents/d/cis/es3492mar_a
Zoltan TeglasSánchez (Spain, Jan 2025): has a net satisfaction rate of minus 35 making him just slightly worse than Starmer in the UK But don't let facts get in the way SOURCE Ipsos Survey Jan 2025 result -35
tattooThere are 50,000 Moroccan and Algerian families that have migrated to the Balearics during the past 8 years. Why do Socialists never ever address the actual elephant in the room.
tattooThat may be true in Calvia, but there's plenty of space in the other 3600 sq. Km. The issue this programme targets is property buyers who don't live here. Some claim it's all about speculation, but there's far better places to property flip, because unless you own and live in the property for more than 10 years, selling it is subject to some pretty hefty tax penalties. There's far better places to "speculate". Most properties purchased by foreigners are to live in as residents, which this programme doesn't apply to. But a significant number are 2nd homes for holiday use, commonly used a few weeks to half the year (many Germans, the main buyers here, spend the winters here and summers in Germany). With respect to non-EU buyers who aren't resident, this is a pretty small contingent of buyers, and so this programme (if in the unlikely event it's ever implemented) will have no significant impact anyway. In any case, the only thing that will have the desired impact is to prohibit any foreign buying for any reason. Aside from the highly questionable legality of this (it would certainly be cancelled before it ever saw the light of day), it would also have severe economic impacts, and therefore also highly unlikely.
The house purchase should be baned for all non residents in the Balearics ! The islands are quite limited and there are just few more building plots left, so extreeme measures should be taken very soon ! If NOT, some day the islands will look like Hong Kong...
This is typical Sanchez. Get onboard everyone. The PP government's wont alow it in their regions so Sanchez will blame the right for the housing crisis. Snake. How did his bill of immunity from prosecution turn out ? Perhaps that should be headline news instead of this.