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

[Flyguy330]

From the BBC

"Spain is planning to impose a tax of up to 100% on the value of properties bought by non-residents from countries outside the EU, such as the UK.

Announcing the move, Prime Minister Pedro Sánchez said the "unprecedented" measure was necessary to meet the country's housing emergency.

"The West faces a decisive challenge: To not become a society divided into two classes, the rich landlords and poor tenants," he said.

Non-EU residents bought 27,000 properties in Spain in 2023, he told an economic forum in Madrid, "not to live in" but "to make money from them".

"Which, in the context of shortage that we are in, [we] obviously cannot allow," he added.

The move was designed to prioritise available homes for residents, the Spanish prime minister said.

Sánchez did not provide any more details on how the tax would work nor a timeline for presenting it to parliament for approval, where he has often struggled to gather sufficient votes to pass legislation.

His office described the proposed measure as a way to limit the purchase of homes by "non-resident non-EU foreigners".

It added: "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."

[CharlieH]

pipe dream by some a-hole. 

 

It will never make it through parliament etc at 100% .

[Will B Good]

Immediate response is…... how do you stop proxy buying?…..people always (the rich at least) find a way around these types of laws/restrictions.

 

In principle I think the idea of preventing property inflation is a good thing.

[Walker88]

Not sure about Spain, but in Italy and France, 'outsiders' often buy old, historical properties in various states of disrepair, and then put in lots of funds---using local licensed artisans---to bring the property back to livable and historical standards.

 

A few years ago I bought an 800 year old castle and have done govt-approved repairs that make it a landmark. I have slowly furnished it with antiques that match the feeling of the structure. The estate also has its own church, which has similarly been brought up to standard, plus buildings where wine was made and aged for hundreds of years. I have cared for the grounds and left a hundred acres of old growth forest untouched and open to locals who wish to hike or view the abundant wildlife. I have no heirs, so someday the property will be returned to the country.

 

Spain ought to consider some outsider purchases as FDI.

[Will B Good]

5 minutes ago, Walker88 said:

A few years ago I bought an 800 year old castle and have done govt-approved repairs that make it a landmark. I have slowly furnished it with antiques that match the feeling of the structure. The estate also has its own church, which has similarly been brought up to standard, plus buildings where wine was made and aged for hundreds of years. I have cared for the grounds and left a hundred acres of old growth forest untouched and open to locals who wish to hike or view the abundant wildlife. I have no heirs, so someday the property will be returned to the country.

 

Gobsmacked

[herfiehandbag]

2 hours ago, Flyguy330 said:

in line with countries such as Denmark and Canada."

I'm not sure that, in the current somewhat febrile international political environment, that drawing attention to oneself by proposing to follow Denmark and Canada is such a frightfully good idea. Particularly given historical and linguistic inks with Latin America!

[gearbox]

Good move by Sanchez. Flush out the parasites. Houses are for living, not for flipping.

[Delta Shift]

3 hours ago, gearbox said:

Good move by Sanchez. Flush out the parasites. Houses are for living, not for flipping.

 

Absolutely

[scubascuba3]

7 hours ago, gearbox said:

Good move by Sanchez. Flush out the parasites. Houses are for living, not for flipping.

People won't want to buy for living with 100% tax

[Ben Zioner]

12 hours ago, Flyguy330 said:

From the BBC

"Spain is planning to impose a tax of up to 100% on the value of properties bought by non-residents from countries outside the EU, such as the UK.

Announcing the move, Prime Minister Pedro Sánchez said the "unprecedented" measure was necessary to meet the country's housing emergency.

"The West faces a decisive challenge: To not become a society divided into two classes, the rich landlords and poor tenants," he said.

Non-EU residents bought 27,000 properties in Spain in 2023, he told an economic forum in Madrid, "not to live in" but "to make money from them".

"Which, in the context of shortage that we are in, [we] obviously cannot allow," he added.

The move was designed to prioritise available homes for residents, the Spanish prime minister said.

Sánchez did not provide any more details on how the tax would work nor a timeline for presenting it to parliament for approval, where he has often struggled to gather sufficient votes to pass legislation.

His office described the proposed measure as a way to limit the purchase of homes by "non-resident non-EU foreigners".

It added: "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."

Great country.  They have done their homework, just as the Portuguese did. 

 

Unlike the French, who remain with their delusion of being "too big to fail". Just like a large cancer.

[KhunLA]

And people here, TH, cry about dual pricing 

[UWEB]

11 hours ago, gearbox said:

Good move by Sanchez. Flush out the parasites. Houses are for living, not for flipping.

Absolutely, and ban right away AirBnB for short time rentals.

[ChipButty]

Governments around the world are tightening rules on short-term rentals to address local challenges. Here are the latest updates:

Athens: The city has introduced a one-year freeze on new short-term rental permits. The goal is to ease housing affordability issues and find a better balance between tourism and community needs. 

 

Egypt: The government is looking to formalize the STR market with stricter rules. Plans include mandatory licensing and a 14% VAT on rental income to ensure better tax compliance and oversight. 

 

Alicante: Over in Spain, Alicante has introduced a two-year ban on new holiday rental licenses in certain neighborhoods. This measure is designed to tackle housing shortages and reduce the pressure of tourism on local communities. 

 

These updates highlight how cities and countries are working to balance the needs of residents and tourists while addressing housing and affordability concerns.

[gearbox]

4 hours ago, scubascuba3 said:

People won't want to buy for living with 100% tax

The Spaniards will buy. It is their country and they are not paying this tax.

[Woke to Sounds of Horking]

14 hours ago, Flyguy330 said:

"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."

Too little too late for Canada.

 

They shoulda done that 25 yrs ago and stopped the money laundering in its tracks.

 

But no.

 

What you get now in places like Toronto is 50 yr-old single family homes costing $1.5 million.

 

Kickbacks and corruption at municipal levels?

 

And/Or a nefarious plan by the radical leftist wokes to destabilise middle class families and either price them out of home ownership forever or be slaves to overpriced rental units?

[bkknirvana]

Spain is a communist state now. The PM wasn't even elected, but chosen. It's almost as bad as China and Thailand!

[BritManToo]

15 hours ago, Flyguy330 said:

Announcing the move, Prime Minister Pedro Sánchez said the "unprecedented" measure was necessary to meet the country's housing emergency.

I thought Spain had millions of vacant homes they couldn't sell at any price?

https://www.ldrgroup.nl/en/toename-van-leegstaande-woningen-in-spanje/

 

Isn't the solution to housing shortages in many western countries to relax restrictions on housing controls and allow cheaper homes to be built in wider areas. Rather than allow the property housing Ponzi to continue?

[In Full Agreement]

14 hours ago, Walker88 said:

Not sure about Spain, but in Italy and France, 'outsiders' often buy old, historical properties in various states of disrepair, and then put in lots of funds---using local licensed artisans---to bring the property back to livable and historical standards.

 

A few years ago I bought an 800 year old castle and have done govt-approved repairs that make it a landmark. I have slowly furnished it with antiques that match the feeling of the structure. The estate also has its own church, which has similarly been brought up to standard, plus buildings where wine was made and aged for hundreds of years. I have cared for the grounds and left a hundred acres of old growth forest untouched and open to locals who wish to hike or view the abundant wildlife. I have no heirs, so someday the property will be returned to the country.

 

Spain ought to consider some outsider purchases as FDI.

 

 

Photos?

 

 

[Tarteso]

1 hour ago, bkknirvana said:

Spain is a communist state now. The PM wasn't even elected, but chosen. It's almost as bad as China and Thailand!

..And Venezuela, with unconditional support for the Dictator Maduro and his dark and corrupt dealings with The unelected Spanish Dictator, full of corrupt Ministers and relatives, illegal financing of the Socialist Party and an Attorney General at the feet of the Megalomaniac, who believes himself to be the Savior of the world. And now fueling the Spanish Civil war👎

 

 

 

 

 

 

[scubascuba3]

1 hour ago, gearbox said:

The Spaniards will buy. It is their country and they are not paying this tax.

Prices will go down as demand will go down

[johnnybangkok]

2 hours ago, Woke to Sounds of Horking said:

What you get now in places like Toronto is 50 yr-old single family homes costing $1.5 million.

 

 

 

And/Or a nefarious plan by the radical leftist wokes to destabilise middle class families and either price them out of home ownership forever or be slaves to overpriced rental units?

Funny you should mention that but I once went to a meeting of radical leftist wokes in Toronto to talk about destabilising middle class families and price them out of home ownership.

 

It was nice. Someone brought cake. 

[gearbox]

1 hour ago, scubascuba3 said:

Prices will go down as demand will go down

Prices will go down...good thing! Why are we rejoicing when the price of electricity and petrol go down? Mindboggling why people insist to pay more for shelter.

[scubascuba3]

2 minutes ago, gearbox said:

Prices will go down...good thing! Why are we rejoicing when the price of electricity and petrol go down? Mindboggling why people insist to pay more for shelter.

Depends if you already own the property, you are comparing apples and oranges

[DonniePeverley]

Irony being alot of the foreigners living in Spain, or who want to go live there voted for Brexit. 

 

Same here in Thailand, you sit and meet guys, who you think would be more 'worldly' in their views on life, but nope they will defend Brexit to the hilt despite the hardships and little positives it has bought them. 

 

Noticed the pound is sinking again. The good old days of when it was over 50 Baht prior to Brexit long gone 

[UWEB]

3 hours ago, bkknirvana said:

Spain is a communist state now. The PM wasn't even elected, but chosen. It's almost as bad as China and Thailand!

Utter nonsense, Spain has a very good and open Democracy

[DonniePeverley]

3 hours ago, BritManToo said:

I thought Spain had millions of vacant homes they couldn't sell at any price?

https://www.ldrgroup.nl/en/toename-van-leegstaande-woningen-in-spanje/

 

Isn't the solution to housing shortages in many western countries to relax restrictions on housing controls and allow cheaper homes to be built in wider areas. Rather than allow the property housing Ponzi to continue?

 

 

They had problems with bad construction companies who went bust in some regions. Not on mass though.

 

[BritManToo]

2 hours ago, scubascuba3 said:

Depends if you already own the property, you are comparing apples and oranges

If you already own the property it's likely to half in value, as the Spanish still can't get finance to buy it, and foreigners won't pay double for it.

[Will B Good]

2 minutes ago, BritManToo said:

If you already own the property it's likely to half in value, as the Spanish still can't get finance to buy it, and foreigners won't pay double for it.

 

Yet another argument for rent not buy when abroad….you never know what’s around the corner.

[scubascuba3]

5 minutes ago, Will B Good said:

 

Yet another argument for rent not buy when abroad….you never know what’s around the corner.

It's certainly an argument for not spending too much on a property just in case. Unlikely to happen here because of the foreign quota limitations, worse case is they screw those people owning property in illegal company name

[Thailand]

3 hours ago, DonniePeverley said:

Irony being alot of the foreigners living in Spain, or who want to go live there voted for Brexit. 

 

Same here in Thailand, you sit and meet guys, who you think would be more 'worldly' in their views on life, but nope they will defend Brexit to the hilt despite the hardships and little positives it has bought them. 

 

Noticed the pound is sinking again. The good old days of when it was over 50 Baht prior to Brexit long gone 

Bought our house here when the rate was  around 73!