Houses on a hill near Marbella on the sunny Costa del Sol in Spain.
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Spain plans to impose a 100% tax on homes bought by non-EU residents in a bid to tackle the country's deep-seated housing crisis.
Spanish Prime Minister Pedro Sanchez on Monday proposed a package of measures aimed at easing a housing shortage, high rents and rising house prices across the country, with foreign homebuyers and mass tourism seen as contributing to housing market pressures.
Speaking at the forum on the matter, socialist leader Sanchez stated that access to housing is one of the main challenges facing Spanish society and that there is a risk of division between communities.
“The West faces a decisive challenge: not to become a society divided into two classes, between rich owners and poor tenants,” he said, noting that housing prices in Europe have increased by 48% in the last decade, almost twice as much as household income.
“We are facing a serious problem with huge social and economic implications, which requires a decisive response from the entire society, including public institutions,” he said. comments published by the government.
Prime Minister Pedro Sanchez speaks during the forum “Housing, the fifth pillar of the welfare state”, organized by the Ministry of Housing and Urban Agenda, at the Railway Museum on January 13, 2025 in Madrid, Spain. During the event, the Prime Minister issued a new statement on housing and emphasized that access to housing is a key issue in the legislature in the face of rising real estate prices, especially in large cities.
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Announcing 12 reforms to tackle the crisis, Sanchez said the government's proposals include a plan to ensure tourist apartments are taxed “like a business” and a proposal to collect 100% tax on the value of homes bought by non-EU residents.
He said such changes would help increase the availability and affordability of housing across Spain.
“Non-residents of the European Union bought 27,000 apartments in Spain (in 2023). They did it not to live, but to speculate, to make money on them, which in the face of shortages we cannot afford,” Sanchez told the daily forum “Housing as the fifth pillar of the welfare state” in Madrid on Monday evening. in comments reported by El Periodico and translated by Google.
“The progressive coalition government has always supported foreign investment, but we want it to be productive, encourage innovation and create new jobs, and not serve speculation as if it were financial assets or bank deposits,” he added.
Spain, holiday homes, tax
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Other measures introduced by Sanchezwho heads the left-wing Spanish Socialist Workers' Party and a coalition government that includes the far-left Sumar party, has outlined plans to provide landlords with tax breaks, offering affordable rents and greater protection for existing tenants.
He announced plans to build more public housing and ensure that existing social housing remains state property. A program will also be launched to renovate empty houses in order to rent them out at affordable prices, he added.
The Prime Minister gave no further details on how the tax on non-EU homebuyers would work, nor did he indicate when such proposals could be submitted to Parliament for approval.
Housing shortages, rising prices – and a strong belief that holiday home owners and holiday rental companies are exacerbating the problem – have sparked a sharp public reaction in Spain, as well as unrest in tourist hotspots on the south coast, the Canary Islands and in cities including Barcelona and Alicante .
Reports from Tourists are asked to 'go home' There have also been incidents of foreign visitors being thrown with water guns, and locals calling on authorities to tackle “overtourism”.
A tourist takes a photo of a message in Park Guell. Anti-tourism organizers have called for a 50% cut in daily ticket sales at the facility, which is one of Barcelona's most important tourist attractions.
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However, Spain's economy relies on tourism, which will boost economic growth and jobs, with the sector generating over 13% of GDP and approximately three million jobs. According to data from the national statistics office, in the first 11 months of 2024, the number of foreign tourists arriving in Spain reached an all-time high, exceeding 88.5 million. IN.
“Tourism is not only driving consumer spending, but high occupancy rates are also driving record hotel investment” – Maartje Wijffelaars, senior eurozone economist at Rabobank stated in the analysis in September last year.
“We expect GDP growth in Spain to moderate somewhat in the future as growth in the tourism sector slows down. However, in the coming quarters and years, growth is expected to remain strong and higher than in the euro area at 2.7 (in 2024), 1.9% in 2025 and 1.5% in 2026.” – she said.