A brutal property tax is on the way: a rate of up to 100% is not out of the question

The Spanish government is considering drastic measures to tackle the housing crisis, including a tax of up to 100% on property purchases by non-residents from non-EU countries. Prime Minister Pedro Sánchez has announced a series of measures aimed at improving housing affordability and curbing investment property purchases, the BBC reports.

The Spanish government plans to impose a tax of up to 100% on the value of property bought by non-residents from non-EU countries, such as the UK. Prime Minister Pedro Sánchez announced the “unprecedented” measure at an economic forum in Madrid to tackle the country’s worsening housing crisis.

The prime minister pointed out that in 2023, 27,000 properties were bought by non-EU residents in Spain “not to live in” but “to make money out of”.

The planned measure aims to give priority to local residents over available housing. The Prime Minister’s office has described the proposal as a way of restricting the purchase of housing by “non-resident non-EU foreigners”. The tax burden could rise to up to 100 per cent of the value of the property, similar to the practice in countries such as Denmark and Canada.

The government says the proposal will be finalised “after careful study”. Sánchez has not yet provided details on how the tax would work or the timing of its approval by parliament, where he has often struggled to secure the majority needed to pass legislation.

Source: penzcentrum.hu