Spain Considers New Tax on Non-EU Property Buyers Amid Housing Crisis

The Spanish Prime Minister, Pedro Sánchez, announced the measure at the beginning of the week, specifying that it aims to solve the problem of housing affordability and high rents in the European Union (EU). The overall objective is to provide "more housing, better regulation and more support," said Sanchez, who did not provide details on the date of entry into force of this measure.

The proposed plan includes higher taxes on vacation rentals, tax incentives and protections for landlords who provide affordable housing, and changes to laws to accelerate construction processes and increase the availability of land for private construction. Joan Carlos Amaro, a real estate analyst and economics professor at the Esade Business School in Barcelona, has reservations about the effectiveness of this measure.

According to the Spanish Constitution, "all Spaniards have the right to enjoy decent and adequate housing." But due to overtourism (88.5 million visitors to Spain in 2024), apartment rents in cities like Barcelona and Madrid have become exorbitant, making it difficult for young people to access housing. Similarly, real estate prices have risen significantly, particularly in cities and coastal areas.

Last year, Spain announced the abolition of the "golden visa," which allows wealthy people from non-EU countries to obtain residence permits by investing more than half a million euros in real estate.