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.
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.
