Spain Plans 100% Tax on Non-EU Property Buyers

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Above: Pedro Sánchez speaks during the second day of the UGT Confederal Congress at the Barcelona International Convention Center on Nov. 26, 2024. Image copyright: Lorena Sopena/Contributor/Europa Press via Getty Images

The Facts

  • Spain's Prime Minister Pedro Sánchez on Monday announced plans to impose a tax of up to 100% on property purchases by non-EU residents, who reportedly bought approximately 27K properties in 2023. The move comes as part of a broader housing affordability initiative in the nation.

  • The proposal is part of a 12-measure package that includes transferring 3.3K homes to a public housing body, increasing taxes on tourist rentals, and offering incentives for affordable housing rentals.

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The Spin

Narrative A

Spain's housing crisis demands immediate action. Speculation by foreign buyers has driven prices beyond locals' reach, while tourist rentals deplete available housing stock and create unsustainable market conditions in major cities. It must be made possible for residents to find affordable housing.

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Narrative B

This proposed tax would discourage foreign investment, potentially destabilize the property market, and represent just a drop in the ocean, given that non-EU purchases account for a small fraction of Spain's 26M homes. It will also create financial uncertainty that could harm the country's real estate sector, and therefore have knock on for Spain's economy.

Metaculus Prediction