Spain plans to levy up to 100% tax on properties bought by non-residents from non-EU countries such as the UK.
Announcing the move, Prime Minister Pedro Sánchez said the “unprecedented” measure was needed to respond to the country's housing emergency.
“The West faces a decisive challenge: not to become a society divided into two classes, rich owners and poor renters,” he said.
Non-EU residents bought 27,000 properties in Spain in 2023, he told an economic forum in Madrid, “not to live in them” but “to make money from them”.
“Which in the context of the shortage we're in, (we) obviously cannot afford,” he added.
Therefore, the move is designed to “prioritize available homes for residents,” he said.
Sánchez did not provide details on how the tax would work or a timetable for bringing it to parliament for approval, where he has often struggled to muster enough votes to pass legislation.
But his government said the proposal would be finalized “after careful study”.
It is one of a dozen planned measures announced by the prime minister on Monday aimed at improving housing affordability in the country.
Other measures announced include tax exemptions for landlords who provide affordable housing, the transfer of more than 3,000 homes to a new public housing authority, as well as tighter regulation and higher taxes on tourist apartments.
“It's not fair that those who have three, four or five apartments for short-term rent should pay less tax than hotels,” he said.