The Spanish Prime Minister Pedro Sánchez proposed a set of measures to combat the worsening housing crisis in the country, most notably a 100% tax on property purchases by non-resident foreign buyers from outside the European Union. These measures aim to prioritize Spanish citizens and residents in the housing market and to limit real estate speculation that contributes to unjustified price increases.

Combating Real Estate Speculation

Sánchez explained in statements during an economic forum in Madrid that the measure is part of a broader plan to address the challenges of the housing market. He said: “In 2023, citizens from outside the European Union bought about 27,000 homes and apartments in Spain, but the vast majority of these purchases were for investment purposes and not for living.” He added that the Spanish government will not allow this situation to continue amid the current crisis, emphasizing that priority will be given to Spanish residents in obtaining homes. He noted that the government welcomes foreign investments that positively contribute to the national economy, but not those that contribute to rising property prices.

Taxing Tourist Accommodations

Sánchez added that his government intends to propose taxing tourist accommodations as a “commercial activity,” in a step aimed at reducing the impact of mass tourism on rental markets in major Spanish cities. He considered that this type of commercial activity significantly contributes to raising rental prices, exacerbating the crisis for Spanish citizens.

A Package of Measures to Address the Crisis

The package presented by the Prime Minister also included several additional measures, including:

• Transferring more than 3,300 homes to a new public housing company with the aim of providing affordable housing for citizens.

• Government support for young tenants to help them cope with rental costs.

Sánchez confirmed that these measures are part of a comprehensive government plan aimed at addressing the economic and social crises resulting from rising housing and rental prices in the country.

Widespread Protests Against Rising Rent

These measures come at a time when Spain is witnessing widespread protests and demonstrations demanding affordable housing, especially in major cities like Madrid and Barcelona. Many citizens oppose rising rental prices and the impact of tourism on the housing market, demanding that the government take more effective steps to ensure affordable housing for citizens.

Similar International Experiences

The Prime Minister noted that measures such as imposing a tax on property purchases by foreigners are already implemented in other countries such as Canada and Denmark, emphasizing that Spain is in urgent need of applying these policies to protect citizens' rights to afford housing.

Sánchez concluded that these “unprecedented” measures in Spain are necessary under the current economic conditions, and they come as part of the Spanish government’s commitment to addressing the housing crisis and ensuring everyone’s right to shelter.