UK Nationals Hit Hard in Spain's Housing Reforms: New 100% Property Tax Explained

Spain has announced a range of new measures aimed at prioritising housing for local Spaniards, including a 100% tax on non-EU nationals buying property.

The proposals will not affect those already living in Spain, but would mean that non-EU nationals would effectively have to pay double the price for a house. At present buying a house in Spain typically incurs additional costs and taxes of around 10% of the value of the property.

Spain has long been a popular retirement destination for British citizens, with over a quarter of a million British people living in the country, more than any other EU country. One famous British immigrant to Spain was Terry Venables, who after his career as a football manager, opened Hotel La Escondida in Spain.

Crackdown On Fraud And Speculation

Spanish Prime Minister, Pedro Sánchez, said that the proposal would 'prioritise the availability of housing for residents'. He also claimed that many of the 27,000 dwellings bought by non-EU residents in 2023 were purchased 'mainly to speculate' rather than to live in.

Sanchez's government has also proposed establishing a state-owned housing company that will be tasked with building tens of thousands of new homes.

Other proposals include incentives to those who renovate vacant properties and tax breaks for those who keep the rents they charge within government guidelines. Measures will also be taken to crack down on fraud and abuses carried out in the seasonal tourist rental market.

Anti-Tourist Protests

Housing has become a major issue in areas of Spain, with Barcelona seeing significant protests against the impact of tourism on the local inhabitants.

The ability to rent out a flat on platforms like Airbnb for significant sums during the tourism is one of a number of factors that make it increasingly unaffordable for local Spaniards to find affordable housing.

Despite the huge sums of money that come into Barcelona during the tourism, large protests telling tourists to 'go home', would indicate that this apparent blessing has come with significant quality of life issues. In some cases, protestors have even shot at tourists with water guns.

EU Nationals Unaffected

It is right that the Spanish government is attempting to rectify the problem of Spaniards being unable to find a home in their own country. Spain is, first and foremost, the home of the Spanish people rather than a retirement home or investment opportunity for people from Britain or any other country.

Where the proposals fall short is that, by remaining in the EU, Spain is forced to accept that citizens from the other 26 EU member states have just as much right to live in Spain as someone born and brought up there.

Someone born in Vilnius or Copenhagen is apparently just as Spanish Antonio Banderas and Rafael Nadal and is also just as able as a retiring Brit to price a local Spaniard out of a home.