Spanish Prime Minister Pedro Sánchez on Monday proposed a range of measures to tackle a housing crisis in the country, including a 100% tax on the purchase of homes by non-EU foreign residents.
Sanchez stated that the proposal would introduce a 100% tax rate on the value of a property for non-EU citizens who don't reside in Spain when they buy a home in Spain, with the aim of "prioritising" housing for residents and tackling the "speculative tourist use of properties."
Sanchez told an economic forum in Madrid that the "unprecedented" measure for Spain, but already in use in countries such as Canada and Denmark, is "acceptable and very urgent" when considering the existing housing crisis.
In 2023, non-EU residents snapped up approximately 27,000 houses and flats in Spain. However, it appears they aren't buying them to occupy them or provide shelter for their family members. The main reason, according to Sánchez, is to speculate, i.e. to make a profit by selling them.
He also stated that, given the current housing shortage, it cannot be "permitted", explaining that Spain's government welcomes foreign investment when it is "productive", not speculative.
The Prime Minister also stated that he would suggest taxing tourist accommodation "as they are, a business."
The measures were part of a comprehensive plan to tackle Spain's housing problems outlined by Sánchez on Monday. They also comprised the transfer of over 3,300 homes to a new public housing body plus government backing for young people renting.
In recent weeks there have been demonstrations for affordable housing, as well as protests against high rents and the impact of mass tourism throughout Spain.