Heard about recent Tax Reforms?
Rest assured, these are yet only proposals outlined by Prime Minister Sánchez that are still in their early stages, and have yet to be officially presented to Parliament.
The proposals will likely undergo significant debate and revision before becoming law.
Spain’s New Housing Accessibility Plan: 12 Key Measures Announced
On 13 January 2025, Spanish Prime Minister Pedro Sánchez unveiled a new housing initiative aimed at tackling Spain’s ongoing housing crisis. The plan includes a set of 12 proposals designed to make housing more accessible, regulate the real estate market, and offer long-term solutions for both renters and buyers. This follows the recent abolition of Spain’s golden visa programme.
The 12 measures, which are still in the proposal stage, are intended to improve affordability and ensure that the real estate market benefits Spanish citizens and residents. While these ideas are yet to be formally presented to Parliament and are likely to undergo significant scrutiny, they represent a substantial shift in housing policy.
Key Proposal: 100% increase on current Property Tax by Non-EU Residents
One of the most discussed aspects of the plan is the proposal for a potential 100% increase on current property tax, meaning it would go from 7% to 14% for non-EU residents. Many questions remain about its implementation. However, the primary goal seems to be limiting property purchases by non-EU buyers who do not reside in Spain. This would affect UK nationals wishing to purchase a second home or investment property, although those already legally residing in Spain would be exempt from this tax.
Prime Minister Sánchez pointed to the growing issue of non-EU residents buying properties to profit from the market rather than to live in them, with 27,000 properties bought in 2023 alone. Given Spain’s ongoing housing shortage, he stated that such purchases “can not be allowed.”
Although the specifics are still awaited, this measure could have a significant impact on foreign investment in Spain’s housing market. For now, we are waiting for further details on how this tax will be calculated and enforced.
