Spanish PM Suggests Ban on Home Purchases by Non-EU Nationals

Key Takeaways

1. Spanish Prime Minister Pedro Sánchez has proposed a ban on non-EU nationals purchasing property in Spain.
2. The initiative aims to address the country’s ongoing housing crisis.
3. The proposal includes restrictions on property purchases by non-EU citizens who neither reside in Spain nor have family living there, targeting speculative investments.

Details
Spanish Prime Minister Pedro Sánchez has announced plans to prohibit non-EU nationals from buying property in Spain unless they or their families reside in the country, citing concerns over speculative investments exacerbating the housing crisis.

In 2023, non-EU citizens purchased nearly 23,000 homes in Spain, prompting Sánchez to take action.

"The government will propose banning non-EU foreigners from buying houses in our country when neither they nor their families live here, as this fuels speculation."
– Pedro Sánchez, Prime Minister of Spain

100% Tax on Property Purchases by Non-EU Nationals
Sánchez’s statement on January 20 follows his earlier announcement on January 13 of plans to introduce a tax of up to 100% on properties purchased by non-EU nationals. This measure aims to curb speculation and address the housing affordability crisis.

"The West faces a decisive challenge: to avoid becoming a society divided into rich landlords and poor tenants."
– Pedro Sánchez, Prime Minister of Spain

Termination of Spain’s Golden Visa Program
As part of its broader housing reform, Spain has decided to abolish its Golden Visa Program, which grants residency to non-EU nationals in exchange for financial investment, including real estate purchases.

Despite its economic benefits, the program has been criticized for inflating housing prices and promoting market speculation. The real estate investment option, in particular, has been the most sought-after, requiring a minimum property purchase of €500,000.

The program is set to officially end on April 3, 2025. The decision to terminate it was approved in December 2024 by Spain’s Congress of Deputies and published in the Official State Gazette (BOE) on January 3, 2025.

"This type of investment puts stress on the housing market, raises prices, and fuels speculation. The Government’s goal is to eliminate speculation."
– Isabel Rodríguez, Minister of Housing

In April 2024, Spain revealed its plans to terminate the Golden Visa Program as part of efforts to increase affordable housing supply and reduce market pressure.