Spain to introduce 100% tax levy on property bought by non-EU residents

[T & P]

As part of a package of new regulations to combat the ever worsening housing crisis, the Spanish government has announced non-EU residents buying property are to attract a new 100% levy

Spain plans 100% tax for homes bought by non-EU residents - BBC News

The measure is meant to help tackle the country's housing crisis, the prime minister said.

www.bbc.co.uk

Whereas this alone will barely scratch the surface of the problem, it is a very welcome step forward, and will make a noticeable impact on tourist-saturated hotspots such as much of the Mediterranean coast, and the Balearic and Canary Islands.

As an added bonus it has already enraged the right kind of people, with the likes of the Telegraph and the Mail, and many of their readers spitting blood over it. The great majority of whom would have, no doubt, voted Leave.



Oh dear, how sad, never mind…

 

[Hollis]

Portugal on the other hand..

 

[The39thStep]

It's the investment /landlord types, the real estate business and the parasitic financial advisers that will be splitting blood. It won't apply to those non-EU buyers who have residency. Hopefully, Portugal will follow suite , how they allow people who aren't resident to buy property at the expense of citizens and residents is beyond me. And scrap these Golden Visas.

edit Didnt see Hollis post .

 

[T & P]

Another measure the Spanish government has announced is to offer tax break incentives to any private landlords who charge affordable rents. Whether it will work, or even how brave the government’s definition of what a fair rent should be, I don’t know. But a good policy on principle.

According to one of the Daily Mail’s frothing-at-the-mouth pieces about this I’ve read, a few other countries are considering similar measures. Which would be great.

 

[Spymaster]

UK should do the same but make it retrospective.

 

[editor]

I hope the Welsh government get to introduce something similar.

 

[Boris Sprinkler]

I’m in Spain right now. Costa Brava. Someone has given me their rented accommodation for a bit.
Not owned by a Spaniard. Dutch. Like a lot of these empty timeshare properties.
Such legislation will make shit all difference.

 

[pesh]

5am crew say aye!

 

[Boris Sprinkler]

Aye. Innit

 

[ska invita]

I’m in Spain right now. Costa Brava. Someone has given me their rented accommodation for a bit.
Not owned by a Spaniard. Dutch. Like a lot of these empty timeshare properties.
Such legislation will make shit all difference.

A potentially massive cultural difference though - De-Britifying Spain for future generations is a good place to start. Give it 20 years of die off and there'll be few Brits left there, apart from the rich who can afford the tax. TBH Brexit had already put an enormous wealth barrier up over this....that dream is over already.

Or so I thought....

Foreign home buyers in Spain by nationality 2023 | Statista

In the fourth quarter of 2023, the British led the purchase of housing by foreigners in Spain, with a share of approximately 10 percent of the total sales.

www.statista.com

Then again maybe Brexit hadnt put the breaks on as much as all that - guess there are enough rich retirees who can meet the income thresholds:




But yeah hard to know the housing impact. Some parts of Spain have loads of property sitting empty whilst others there's massive competition. Will shaving off nonEU people make that much difference in Barcelona?
I reckon it will make more difference in Benidorm

 

[Elpenor]

Can see a lot of these properties just being handed back or abandoned as there goes the resale market. Probably a good business opportunity to offer cash for keys / deeds

 

[existentialist]

Can see a lot of these properties just being handed back or abandoned as there goes the resale market. Probably a good business opportunity to offer cash for keys / deeds

"webuyanyvilla.es"

 

[teuchter]

Why only non EU? Is it because it's easier to legislate?

 

[rubbershoes]

I reckon it will make more difference in Benidorm

I was in Benidorm a couple of years ago and the surrounding hills have masses of construction going on. Lots of villas with pools.

I imagine there's a housing crisis in the area but this type of building is doing nothing to help.

There'll be hoovered up by EU citizens wanting some sunshine

 

[existentialist]

Why only non EU? Is it because it's easier to legislate?

I imagine that's a large part of it, yes. Freedom of movement in the EU presumably includes freedom to buy a home anywhere in the EU...

 

[Spymaster]

Why only non EU? Is it because it's easier to legislate?

Because they're taking a direct, and not very well disguised, aim at Brit expats.

 

[teuchter]

I was interested in this bit in the BBC article -

"The tax burden that they will have to pay in case of purchase will be increased up to 100% of the value of the property, in line with countries such as Denmark and Canada."

I can't find any reference to something like this existing in Denmark.

 

[The39thStep]

Why only non EU? Is it because it's easier to legislate?

Yes . In EU law there is a right for EU citizens to purchase property in other states . I think there is an exception for Denmark on second homes ( perhaps at the time of joining? )

 

[The39thStep]

Because they're taking a direct, and not very well disguised, aim at Brit expats.

If British immigrants become residents these proposals doesn’t apply .

 

[JimW]

Fair chunk of Moroccan and Chinese buyers among some other non-EU nations.

 

[sparkybird]

As usual the headlines don't tell the full story and are there to generate clicks and grumbling!

This was one of 12 housing related announcements, and was made at an economic forum. It was not a statement to parliament, and there is no current government proposal for this tax. It was ambiguous whether the 100% figure related to the entire property value, or to the current level of property purchase tax, which is currently around 8-10% of the property value, and varies by region. Clearly the latter is more like a second home tax.
If the government proposes an increase up to 100% of the property value, it will take considerable time to become law as it requires approval by both congress and the senate. PSOE the ruling party, do not have a majority in either congress or the senate......
If it comes into place, it would affect non resident third country nationals buying holiday homes, not people moving to Spain to live.

 

[teuchter]

As usual the headlines don't tell the full story and are there to generate clicks and grumbling!

This was one of 12 housing related announcements, and was made at an economic forum. It was not a statement to parliament, and there is no current government proposal for this tax. It was ambiguous whether the 100% figure related to the entire property value, or to the current level of property purchase tax, which is currently around 8-10% of the property value, and varies by region. Clearly the latter is more like a second home tax.
If the government proposes an increase up to 100% of the property value, it will take considerable time to become law as it requires approval by both congress and the senate. PSOE the ruling party, do not have a majority in either congress or the senate......
If it comes into place, it would affect non resident third country nationals buying holiday homes, not people moving to Spain to live.

Seems like straight up shoddy journalism from the BBC then.