Spain Proposes 100% Tax on Property Purchases by Non-EU Citizens
Key Highlights
- Spain plans to impose a tax of up to 100% on properties purchased by non-EU nationals.
- Prime Minister Pedro Sánchez stated the measure aims to address the nation's housing crisis.
- Spain has already abolished its Golden Visa Program to combat the housing emergency.
Spain is considering the introduction of a tax of up to 100% on properties purchased by non-EU citizens, as part of efforts to tackle the country's housing emergency. The move follows the recent termination of Spain's Golden Visa Program, which had previously allowed non-EU nationals to invest in real estate to gain residency.
This initiative, confirmed by Prime Minister Pedro Sánchez, seeks to curb speculative property purchases and prioritize housing availability for residents.
"The West faces a decisive challenge: to avoid becoming a society divided between wealthy landlords and struggling tenants," said Sánchez.
The Prime Minister highlighted that in 2023 alone, non-EU citizens purchased around 27,000 properties in Spain, often not for personal use but for profit-driven purposes. Sánchez emphasized that under the current housing crisis, such practices cannot continue.
Implementation of the Proposed Tax
Although Sánchez did not provide detailed plans for the tax framework, his office indicated the measure aims to significantly discourage non-EU nationals from purchasing properties in Spain. The proposed tax could reach up to 100% of the property's value, aligning with similar policies in countries like Canada and Denmark.
The government confirmed the proposal is still under review and will be finalized after careful analysis.
Golden Visa Program Termination
Spain’s Golden Visa Program, which allowed foreign nationals to obtain residency through real estate investments, was abolished in April 2024. The decision to end the program was part of broader efforts to address Spain's housing affordability issues.
Housing Minister Isabel Rodríguez explained that the Golden Visa Program had contributed to market stress, driving up property prices and fueling speculation.
"This type of investment increases house prices and encourages speculation. Our objective is to end this and reinforce the supply of affordable housing," said Rodríguez.
Surge in Golden Visa Applications Before Termination
The announcement of the program's termination led to a surge in applications. According to Golden Partners, a consultancy firm for international investors, there was a sharp increase in applications, particularly after the decision was officially published in the Official State Gazette (BOE) on January 3, 2025.
The proposed measures reflect Spain’s determination to tackle the housing crisis and ensure the availability of affordable homes for its residents.