In January 2025, Spanish Prime Minister Pedro Sánchez proposed imposing a 100% tax on property purchases by non-EU citizens who are not residents of the bloc. This measure aims to curb speculative investments and address Spain's housing affordability crisis. The proposal is part of a broader strategy to increase housing supply and reduce demand pressures.

Real Estate Sector Reacts

Real estate experts have expressed concerns that such a tax could deter foreign investment and harm Spain's reputation among international buyers. CBRE, a prominent real estate firm, warned that these regulatory changes might discourage investors. Additionally, some industry professionals believe that the measure may have a limited impact on housing affordability, given that non-resident foreign buyers constitute a small fraction of annual property transactions.

However, supporters of the measure point to statistics indicating that foreign buyers often pay significantly higher prices for properties, particularly in prime locations like the Costa del Sol. According to El País, non-EU buyers spend twice as much on homes as Spanish residents, driving up prices and potentially pricing locals out of the market. The government hopes the proposed tax will level the playing field and encourage local homeownership.

Comparative Measures in Other Countries

While Spain is considering this significant tax increase, other countries have implemented measures to regulate foreign property investments. For instance, Denmark and Canada have policies aimed at limiting foreign speculation in their housing markets. As of now, France has not introduced a similar tax on non-EU property buyers. In 2023, non-resident EU home buyers in France were fewer in number compared to Spain, with Britons purchasing 2,341 properties and Americans 863. The majority of non-French resident buyers in France come from within the EU, so they would not be subject to a Spanish-style tax.

Final Thought

Spain's proposed 100% tax on property purchases by non-EU non-residents reflects a significant policy shift aimed at addressing housing affordability. While intended to prioritise residents' access to housing, the measure has sparked debate about its potential impact on foreign investment and the broader real estate market. As the proposal progresses, its implications will be closely monitored by the specialist team at Gibro Abogados.