People from the UK could face a huge tax bill if they want to buy a home in Spain.
Spanish Prime Minister Pedro Sánchez has announced that non-resident citizens from countries outside the European Union, including the UK, would face a big tax bill if they wanted to buy a home in the country. It is part of a string of measures designed to lower the cost of living and housing for Spanish citizens.
According to El Econimista, people from the UK looking to buy a place in Spain could face paying double for the pleasure. “For them, the tax burden will be up to 100% of the value of the property,” Sánchez announced, according to Ultima Hora.
“In 2023 alone, non-residents from outside the European Union bought 27,000 houses and flats. Not to live in them, but mainly to speculate. To make money out of them. Something that, in the context of the shortages we are experiencing, we cannot afford.”
While British people could still technically buy homes in Spain, the ultra-high tax rate would make it incredibly expensive and essentially force all but the most determined buyers out of the market, reports the Mirror. The move – which is yet to be given a timetable or be announced in much detail – is the latest in a series of policy announcements from the PM that are designed to tackle the issue of international money making everyday life more difficult for Spanish citizens. Sánchez recently abolished “golden visas,” which granted residency to individuals buying property worth over €500,000.
On Monday, Sánchez also pledged large-scale investment in affordable rental properties, aiming to stabilise prices in the private rental sector, and promised to crack down on holiday lets including Airbnbs. The government plans to introduce national regulations, although implementation will largely depend on regional and local authorities.
The government also hopes to fill vacant homes by offering tax incentives to landlords and safeguards against non-payment, In Spain News reports. A fund will also be created for Spain’s 17 regions plus local councils to apply for money to increase inspections of tourist properties, so authorities can ensure that they are licensed and run properly.
Spain is experiencing a major housing shortage at the moment. The Spanish government and local authorities (including the Balearics) have already spoken about trying to limit the sale of homes to non-resident Britons. “Average house prices in Europe have risen by 48% in the last decade and it is unbearable. Housing has become the biggest problem for the middle and working classes in Spain and in Europe,” Sánchez said.
Holidaymakers have also been warned to avoid trips to three of Europe’s ‘hyper-tourist’ hotspots. “Hyper-tourist” cities is where locals are outnumbered by tourists more than 20 to one.
View news Source: https://www.chroniclelive.co.uk/whats-on/travel-tourism/spain-confirms-new-law-could-30776344
