Spain’s government is shaking things up with a plan to slap a 100% tax on homes bought by people from outside the EU, including Brits. Prime Minister Pedro Sánchez called the move “unprecedented” and said it’s all about tackling the country’s housing crisis.
“We can’t let the West turn into a place of rich landlords and poor tenants,” Sánchez said at an economic forum in Madrid. He pointed out that non-EU residents snapped up 27,000 Spanish properties in 2023—not to live in, but to profit from.
“Given the housing shortage, we just can’t allow it,” he added, explaining the aim is to keep homes available for locals.
While Sánchez didn’t get into the specifics of how the tax would work or when it might roll out, his office said it’s designed to curb purchases by “non-resident non-EU foreigners.” Non-residents are defined as those living in Spain fewer than 183 days a year.
If it passes, the tax would hike the current property tax for non-residents—which ranges from 6-10%—to as much as 100% of the home’s value, aligning Spain with countries like Denmark and Canada that have introduced similar policies.
The proposal is still under review, and the government said it’s being “carefully studied” before finalization.
Mixed Reactions from Potential Buyers
The news has left some prospective British buyers second-guessing their plans.
Michele Hayes, a 59-year-old from Manchester, had been house-hunting near Alicante for her retirement. “We could rush to buy before the tax kicks in, but who knows what other changes might follow? Selling could become a nightmare if non-residents are blocked,” she said.
Martin Craven, 62, from London, has already decided to shift his focus elsewhere. “I won’t risk it—there could be more taxes down the line. I’m looking at Cyprus now.”
Julian, 54, from Surrey, shared his frustration. “I wanted to spend 4-6 months a year in Spain, contributing to the local economy, but this makes it feel too risky. Sure, the UK has landlord issues too, but this policy overlooks people like me who genuinely want to invest in the country.”
More Changes to Come
The 100% tax is just one of many housing reforms Spain announced on Monday. Other measures include tax breaks for landlords offering affordable housing, transferring over 3,000 homes to a public housing body, and stricter rules on tourist rentals.
Sánchez highlighted the need for fairness in the housing market: “It’s not right that owners of short-term rentals pay less tax than hotels.”
Whether this bold move helps fix Spain’s housing crisis or deters foreign investment remains to be seen—but it’s certainly got everyone talking.
