Spain proposes 100% tax on non-EU homebuyers to tackle housing crisis

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Craig Nigrelli Anchor

By Craig Nigrelli (Anchor), Shea Taylor (Producer), Ian Kennedy (Lead Video Editor)

Spain, like many other countries, is in the throes of a housing crisis — but a new plan to tax foreign homebuyers could help solve that. The country is planning to impose a 100% tax on homes bought by those who are not from the European Union.

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With foreign homebuyers and mass tourism seen as contributing to the problem in Spain, Prime Minister Pedro Sanchez proposed a package of measures, which includes taxes, aimed at alleviating a shortage of homes, high rents and rising house prices across the country on Monday, Jan. 13.

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Sanchez said house prices in Europe have gone up 48% over the last decade — almost twice as much as household income — which he said risks dividing society into two classes: “rich owners and poor tenants.”

The measure includes 12 housing reforms. The package includes a plan to tax tourism apartments “like a business.” It also suggests a proposal to levy a 100% tax on the value of homes bought by non-EU residents, as well as tax relief to landlords offering affordable rent and more protection for existing tenants.

The prime minister also announced plans to build more public housing and launch a program to renovate empty homes to rent out at affordable prices.

Sanchez did not provide any details on how the tax on non-EU homebuyers would work nor did he indicate when the proposals will be submitted to Parliament for approval.

Tags: Affordable housing, European Union, Home sales, Housing Market, Spain, Taxes, Tourism

[Craig]

SPAIN – LIKE MANY OTHER COUNTRIES – IS IN THE THROES OF A HOUSING CRISIS… BUT A NEW PLAN COULD HELP SOLVE THAT.

THE COUNTRY IS PLANNING TO IMPOSE A 100 PERCENT TAX ON HOMES BOUGHT BY THOSE WHO ARE **NOT** FROM THE EUROPEAN UNION.

WITH FOREIGN HOME BUYERS AND MASS TOURISM SEEN AS CONTRIBUTING TO THE PROBLEM – SPANISH PRIME MINISTER PEDRO SANCHEZ ON MONDAY PROPOSED A PACKAGE OF MEASURES AIMED AT ALLEVIATING A SHORTAGE OF HOMES, HIGH RENTS AND RISING HOUSE PRICES ACROSS THE COUNTRY.

SANCHEZ SAID HOUSE PRICES IN EUROPE HAVE GONE UP 48 PERCENT OVER THE LAST DECADE – ALMOST TWICE AS MUCH AS HOUSEHOLD INCOME – WHICH HE SAYS RISKS DIVIDING SOCIETY INTO TWO CLASSES: “RICH OWNERS AND POOR TENANTS.”

AMONG THE 12 REFORMS THAT WOULD BE INCLUDED IN THE PACKAGE ARE A PLAN FOR TOURISM APARTMENTS TO BE TAXED “LIKE A BUSINESS” AND A PROPOSAL TO LEVY A 100 PERCENT TAX ON THE VALUE OF HOMES BOUGHT BY NON-E-U RESIDENTS… AS WELL AS TAX RELIEF TO LANDLORDS OFFERING AFFORDABLE RENT AND MORE PROTECTION FOR EXISTING TENANTS.

THE PRIME MINISTER ALSO ANNOUNCED PLANS TO BUILD MORE PUBLIC HOUSING AND LAUNCH A PROGRAM TO RENOVATE EMPTY HOMES TO RENT OUT AT AFFORDABLE PRICES.

SANCHES DID **NOT** PROVIDE ANY DETAILS ON **HOW** THE TAX ON NON-E-U HOMEBUYERS WOULD WORK – NOR DID HE INDICATE WHEN THE PROPOSALS WILL BE SUBMITTED TO PARLIAMENT FOR APPROVAL.

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