Spain unveils plan to address skyrocketing housing costs and rental prices by taxing foreign homebuyers up to 100%, building more public housing, and regulating short-term rentals.
Spain is preparing a comprehensive plan to tackle its escalating housing crisis , which includes a potential 100% tax on properties purchased by non-European Union residents. Prime Minister Pedro Sánchez unveiled this strategy this week, aiming to alleviate housing affordability issues and soaring rental costs prevalent in the nation. The primary objective, according to Sánchez, is to provide 'more housing, better regulation, and greater aid.
' However, the success of this plan hinges on its passage through parliament, given the minority coalition government.Spain, like many affluent countries, is grappling with a burgeoning housing affordability crisis. Rental costs, particularly in major cities like Barcelona and Madrid, have skyrocketed, leaving many, especially young people, struggling to keep up. Simultaneously, housing prices are steadily climbing, particularly in urban centers and coastal regions. This surge in prices is further exacerbated by short-term rental contracts primarily catering to tourists, a significant factor driving up rental costs in Spain.The country attracts a massive influx of tourists, hosting over 88.5 million visitors in 2024, making it one of the world's most popular tourist destinations. Tourism serves as a cornerstone of Spain's economy. However, the influx of tourists has occasionally sparked friction with residents concerned about rising costs, the proliferation of short-term rentals on platforms like Airbnb, and the strain on water resources in certain areas, including the Canary and Balearic Islands. Protests erupted last year in various cities across Spain as residents voiced their discontent over the escalating tourism and rental costs. Barcelona's city hall has pledged to eliminate all short-term tourist rentals within the coming years. The Spanish government plans to curb the number of homes purchased by foreigners by imposing a tax of up to 100% on properties bought by non-European Union residents. In 2023, Sánchez stated that non-EU residents acquired 27,000 properties in Spain, 'not to live in' but 'to make money from.' In addition to this tax measure, the government aims to construct more public housing and allocate approximately two million square meters of residential land to a newly established public housing agency. Other proposed measures encompass higher taxes on holiday rentals, tax incentives and protections for landlords who offer affordable housing, and legal amendments to expedite construction processes and increase the availability of land for private development
Real Estate Housing Crisis Spain Foreign Homebuyers Taxes Tourism Rental Costs
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