Spain’s PM Sanchez proposes a 100% tax on property purchases by non-EU citizens, aiming to curb speculation and ease housing shortages.
Spain’s Prime Minister, Pedro Sanchez, has proposed a radical measure to address the country’s housing crisis by targeting property acquisitions by non-EU citizens.
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Speaking at a rally in Plasencia on Sunday, Sanchez unveiled a plan to impose up to a 100% tax on property purchases by non-EU foreigners, including Nigerians, who are not residents of Spain.
“We will propose to ban these non-EU foreigners who are not residents, and their relatives, from buying houses in our country since they only do so to speculate,” Sanchez stated.
This proposal forms part of a broader strategy aimed at boosting housing supply while curbing speculative demand that drives up property prices.
Reuters reported that the initiative is designed to discourage non-resident investors from further straining Spain’s already overburdened housing market.
A source close to Sanchez emphasised that the ban has not yet been finalised. Instead, the government’s immediate focus is on dissuading speculative purchases through increased taxation.
The announcement has sparked reactions from industry experts, with Paloma Relinque, CBRE’s executive corporate director for Spain, noting, “All factors related to regulatory and juridical changes are discouraging investors.”
Spain’s housing market has faced mounting challenges in recent years, exacerbated by gentrification, a booming tourism sector, and a limited housing supply.
The Central Bank of Spain projects a deficit of 500,000 houses in 2025, underlining the urgent need for reform.
