The Spanish government plans to implement a tax on non-EU citizens, including Brits, buying homes in the country. The new measures aim to address the housing shortage and prioritize availability for residents.
The Spanish government has unveiled drastic reforms affecting Brits' ability to buy homes as the country desperately looks to tackle the mounting housing crisis. Prime Minister Pedro Sánchez today announced a new package of 12 measures the government hopes will win over residents furious with the lack of available homes. One contentious proposal is the introduction of a tax for non-EU citizens buying houses in the country who do not already reside in Spain.
The government suggested levying a tax on foreigners, including Brits, by raising the amount paid when purchasing a house to 100 per cent of the value of the property. House-buyers in Spain are currently expected to pay costs and taxes worth between 10 and 12 per cent of the price of the house, depending on where it is. Sanchez said that the new tariff would help 'prioritise the availability of housing for residents'. He noted that in 2023 alone, non-residents from outside of the EU bought 27,000 houses and flats in Spain, 'not to live in them, but mainly to speculate'. He said this was 'something that, in the context of the shortages we are experiencing, we cannot afford'. Spain has seen massive demonstrations grow year-on-year, with aggrieved locals decrying the housing shortage while opportunists buy up homes and rent them out to holidaymakers, or leave them vacant for most of the year. Residency in Spain is open to UK nationals and other non-EU citizens planning to stay longer than 90 days, subject to fees and proof of financial stability. Sanchez's radical plan to address the housing crisis was presented today, outlining 12 measures focused on reforming the construction industry, ensuring affordable rentals and offering incentives to those who follow renting guidelines. This includes transferring land to a new Public Housing Company that the government says it will use to build thousands of new affordable rental houses. Sanchez said in the first half of this year the company will begin to incorporate more than 30,000 Sareb homes, some 13,000 with immediate effect. The government also hopes to 'rehabilitate' vacant homes for additional 'affordable rental', offering incentives to those who renovate flats and make it available for an extended period of time. It hopes an income tax exemption for owners letting out their homes according to the 'Reference Price Index' will encourage a healthier rental ecosystem. In a bid to ensure Spaniards can access homes before wealthy non-EU citizens, the proposals also include a measure to 'limit' the purchase of homes by people who 'do not reside in our country'. This is to be tightened with regulations on fraud for seasonal rentals, disincentivising those who illicitly look to make the most of Spain's lucrative tourist season. 'The objective with all these measures is clear. What we want is to protect citizens, to find a better balance between tourism and investment, which are two key activities for our economy,' Sanchez said with the announcement. 'And also, logically, access to housing, which is a constitutional right of the people and a legitimate objective of our Government when we say that we want to make it the fifth Pillar of the welfare state.
HOUSING CRISIS TAXATION NON-EU SPAIN GOVERNMENT
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