Spanish Prime Minister, Pedro Sanchez, was forced to defend his controversial new property tax on home sales to non-resident/non-European Union buyers at the World Economic Forum in Davos this week. The tax will principally hit British and American property buyers in Spain as they are some of the biggest buyers of Spanish property but obviously from outside the European Union and in some cases non residents in Spain.
Sanchez said that at a time when Spain was struggling with a lack of housing it was incredible that non-resident/non-EU citizens could own a home bought in most cases as an investment which they hardly used. When questioned he denied that Spain was anti-foreign investment.
The proposed tax, which many informed sources believe will never be approved by parliament, places a 100 percent surcharge on non-European Union buyers. For the British it could mean the end of a dream of a Spanish holiday homes.
The Spanish government says that 27,000 properties across the country where sold to non-resident/non European Union citizens.
Property experts say that the biggest losers from this proposed tax will be the British because they are still the Number 1 market for Spanish property. The opposition Partido Popular has said that they will not allow the tax in the Spanish regions where they govern which includes the Balearics.
11 comments
To be able to write a comment, you have to be registered and logged in
TawnyIn the EU, only Croatia and Poland out performed Spain last year (Malta and Cyprus are small islands so not comparable). As for the UK, you'll have to scroll a long way down to find it. Happy now? https://www.statista.com/statistics/686147/gdp-growth-europe/
Zoltan TeglasWhere do you get your info from about Spain being one of the best performing economies? At best they are ranked No.10!!!
EnzoAbsolute rubbish. The Spanish economy is one of the best performing in Europe and Spain is a modern European country with far better infrastructure than the UK for example - how is that in anyway like Venezuela.
JamesWell that would require him to actually do something to fix the local problem. It’s easier to implement a jizya tax on the foreigner. Just like the emir of old..
He's Building a New Venezuela and he´s got quite a lot of help Spain could turn complete Comi in the blink of an eye all this free free free and many people with no paper work no one know´s how old they are where they come from and what is there name , he´s always wearing the suit´s which reflect his Farmer look and he likes flying to DAVOS for Fondue while the poor Spanish try to keep the light´s on !
David HollandThere's thousands if not millions of half finished homes and derelict properties in Spain. Maybe Sanchez should have started there......
The real problem is that he's only limited it to non resident non EU nationals so it won't solve the housing crisis, it will just mean more French/German owners instead of British or American owners. Just more punishment for Brexit
TCThe amount you mention is actually very nearly15 billion.
As i mentioned in a previous comment, the 10 billion wiped from Catalan National debt could have built 100,000 thousand new social houses with rental incomes contributing to more houses/ Apt being built over future years. No need to upset anyone. As it is he has upset nearly everyone exepct the catalan regional government.
Is he really surprised that this move wouldn’t be seen as anti investment. I have no idea how many house sales occur in Spain each year but 27 k to foreigners doesn’t seem a lot. As for British being the worst hit. Well 100% tax on a Majorca property. Takes you to some very nice places in Europe. Nice , Tuscany, and Portugal, Sardinia,