Spanish Prime Minister Pedro Sánchez announced a plan to address the country's growing housing affordability problem by imposing a tax of up to 100% on properties bought by non-EU citizens. The goal is to increase housing availability, regulate the market, and provide more aid to residents struggling with high rents and rising property prices.
, including an up to 100% tax on properties bought by people who are neither citizens nor residents of the European Union.
However, it remains unclear if the plan put forth by Sánchez’s minority coalition will pass in parliament. Here’s a look at what’s happening:Like most rich countries, Spain is in the throes of a growing housing affordability problem. Skyrocketing rents are particularly acute in cities like Barcelona and Madrid, where incomes have failed to keep up, especially for young people. Housing prices are also steadily rising, especially in cities and coastal areas.
Joan Carlos Amaro, a real estate analyst and professor of economics at the Esade Business School in Barcelona, said that while Spain is suffering a housing crunch, he can’t see how the tax will lead to homeowners or real estate promoters guaranteeing that these normally high-end properties end up in the hands of middle-class Spaniards.“Anything that puts up barriers and stops the market from functioning ends up hurting everyone,” Amaro said in Barcelona.
Other proposed measures include higher taxes on holiday rentals, tax breaks and protections for landlords who provide affordable housing, and amending laws to speed up construction processes and expand the availability of land for private construction.But as one of Europe’s leading Socialist politicians, the housing crunch is a crucial question for Sánchez to resolve as he tries to keep his left-wing minority coalition afloat after winning another four-year term in 2023.
HOUSING AFFORDABILITY SPAIN TAXATION FOREIGN PROPERTY BUYERS TOURISM
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