Spanish Prime Minister Pedro Sanchez proposed on Monday a series of measures to tackle a housing crisis in the country, including a 100% tax on the purchase of homes by non-resident non-EU foreigners.
Sanchez said the measure would impose a 100% tax rate on the value of the property for non-EU citizens who do not reside in Spain when they buy a house in Spain to "prioritize" housing for residents and fight the "speculative touristic use of properties."
He told an economic forum in Madrid that the "unprecedented" measure for Spain, but already in place in countries such as Canada and Denmark, was "appropriate and very necessary" when considering the current housing crisis.
"In 2023 alone, non-EU residents bought around 27,000 houses and flats in Spain. Not to live in them, not for their relatives to live in them; they did it mainly to speculate, to make money off them," Sanchez said.
He added that in a context of residential shortage, this cannot be "allowed," asserting that Spain's government welcomes foreign investment when it is "productive," not when it is speculative.
The Spanish prime minister also said that he would propose taxing tourist housing "as what they are, a business."
The measures were among a broader package to address Spain's housing crisis, presented by Sanchez on Monday. They also included the transfer of more than 3,300 houses to a new public housing company and state support for young renters.
In recent months, there have been demonstrations for affordable housing, protests against high rents, and concerns about the impact of mass tourism in Spain.
