Spain Targets Housing Crisis with Tax Hike on Non-EU Property Buyers

Spain's Prime Minister, Pedro Sanchez, has proposed aggressive measures to tackle the country’s housing crisis, including a potential tax of up to 100% on property purchases by non-European Union buyers.

Speaking at a housing event in Madrid, Sanchez highlighted the growing scarcity of homes, exacerbated by speculative property purchases and the rise of short-term rentals like Airbnbs.

“In 2023, non-residents from outside the EU purchased around 27,000 homes in Spain, primarily for speculation rather than residency,” Sanchez stated. “With the housing scarcity we face, we cannot allow this.”

Key Housing Proposals

The new measures, which will be presented to parliament, aim to:

1. Impose a steep tax on non-EU buyers, such as those from the UK and US.
2. Increase taxes on short-term rental properties to align them with commercial tax rates.
3. Expand public housing efforts by utilizing 3,300 existing homes and 2 million square meters of land for development.

Sanchez emphasized that these actions target speculation-driven housing scarcity, with a particular focus on tourist hotspots like Barcelona and Madrid, where short-term rental apartments dominate the market.

Mixed Reactions

While the proposals have drawn support from Spain’s coalition partner, the leftist Sumar party, critics have questioned their feasibility.

• Gilmar Real Estate: The prominent firm dismissed the measures as symbolic, arguing that non-EU buyers typically invest in properties that don’t compete with the housing needed to address the crisis.
• Sumar Party: Culture Minister Ernest Urtasun welcomed the steps but criticized them as insufficient, calling for broader reforms.

The proposals may also face challenges in parliament, where Sanchez’s minority government has struggled to gain traction, particularly on budget approvals for 2025.

Broader Context

The tax proposal reflects growing tensions around housing availability in Spain, one of the world’s most popular tourist destinations. Anti-tourism sentiment has surged in cities like Barcelona, where locals blame short-term rentals and tourism for driving up property prices.

Sanchez’s measures aim to curb speculation, expand housing supply, and foster long-term affordability, but their implementation and effectiveness remain to be seen in a fragmented political landscape.