Spanish Prime Minister Pedro Sรกnchez announced plans to impose significant restrictions on property purchases by non-EU buyers in Spain. The proposed measure would introduce a ๐ญ๐๐ฑ ๐จ๐ ๐ฎ๐ฉ ๐ญ๐จ ๐๐๐% ๐จ๐ง ๐ญ๐ก๐ ๐ฏ๐๐ฅ๐ฎ๐ ๐จ๐ ๐ญ๐ก๐ ๐ฉ๐ซ๐จ๐ฉ๐๐ซ๐ญ๐ฒ made by buyers residing outside the European Union.
He didn’t provide more details of how this would work, but did say this was something Congress (Spainยดs Congreso de los Diputados) would have to approve.
This policy aims to address concerns about housing affordability in Spain and follows similar measures adopted by other countries to regulate foreign property investment, in the presentation he mentions Canada and Denmark.
The Spanish governmentโs 12 proposed housing measures :
- New Public Housing Company:
A public housing company will receive over 3,300 homes and nearly 2 million square meters of land to build affordable rental housing. Another 30,000 homes will come from the state-owned SAREB gradually. - Purchase Priority for Public Housing:
The public housing company will have priority in buying homes and land, alongside regional governments, to expand affordable housing. - Protection of Public Housing:
Public housing built with state funds will remain designated for social use indefinitely. - Innovative Construction Methods:
A program to modernize modular and industrial construction will launch, aiming to build homes faster and cheaper. - Public Rent Guarantees:
A guarantee system will protect landlords and tenants, starting with those who rent to young people at affordable rates. - Incentives for Renovating Empty Homes:
Financial aid will be available for renovating vacant homes to use them as affordable rentals. - Tax Exemptions for Affordable Rentals:
A 100% tax exemption will be introduced for landlords who set rent according to official price indices in high-demand areas. - Tourist Rentals Classified as Economic Activities:
Tourist rental properties in areas with housing shortages will be taxed as businesses and subject to VAT.Requires approval by Congress. - Restrictions on Real Estate Investment Trusts (SOCIMIS):
Tax benefits for SOCIMIS will depend on their contribution to affordable housing development. Requires approval by Congress. - Limits on Non-Resident Foreign Buyers (MENTIONED ABOVE)
Non-resident buyers from outside the EU may face stricter regulations when purchasing homes in Spain. Requires approval by Congress. - Crackdown on Fraud in Seasonal Rentals:
Seasonal rental fraud will face tougher regulation, with increased inspections and funding for enforcement. - New State Housing Plan:
A comprehensive housing plan will be developed, set to begin in 2026, to address long-term housing issues.
These measures aim to tackle housing shortages, promote affordable rentals, and regulate the housing market in Spain.
