Spain Proposes 100% Non-EU Property Tax

Spain is facing a severe housing affordability crisis with skyrocketing rents and rising property prices, particularly in cities like Barcelona and Madrid. In response, Prime Minister Pedro Sánchez has announced a comprehensive plan, including a controversial proposal for an up to 100% tax on properties purchased by individuals who are neither citizens nor residents of the European Union. This measure aims to curb foreign investment in real estate, which is perceived to contribute to the housing crunch. Other proposed actions include building more public housing, allocating residential land to a new public housing agency, implementing higher taxes on holiday rentals, and offering tax breaks for landlords providing affordable housing. The plan also seeks to amend laws to expedite construction processes. The government previously scrapped its 'golden visa' program. While these measures are intended to make housing more accessible for Spanish citizens, there are concerns among real estate analysts that such barriers could negatively impact the market and the broader economy, which benefits from foreign investment and tourism.