Furious British homeowners reacted strongly against Spain’s proposed second home tax, which could levy a 100% surcharge on non-EU purchasers, including British nationals. Prime Minister Pedro Sánchez announced this measure as part of a 12-point plan aimed at addressing the ongoing housing crisis and growing dissatisfaction with vacant properties. Concerns arise that such a tax could deter potential buyers and devalue current homes, jeopardizing local economies reliant on tourism. Critics warn this could exacerbate the housing shortage and disrupt Spain’s real estate market, while supporters argue it’s necessary to prioritize housing for residents. The plan must still navigate parliamentary approval.
Furious Brits today spoke out against Spain’s proposals for a bombshell second home tax that could double the cost of buying a property.
Prime Minister Pedro Sánchez yesterday announced a new package of 12 measures designed to win support from residents furious about the lack of vacant housing.
One of the controversial proposals, which comes amid the housing crisis and a series of anti-tourism protests, would introduce a tax on non-EU nationals who do not already reside in Spain when they buy a home in the country. It’s a thing.
The government has proposed that non-EU residents, including British nationals, be taxed on the amount they pay to buy a home, increasing the amount they pay to 100% of the property value.
Concerned Brits say the proposals could force them to cancel relocation plans, while owners of existing homes fear they won’t find buyers.
The 100 per cent tax would be a rocket booster for property prices in Spain, famous for its affordability, including a five-bed coastal villa in Andalusia currently advertised for £400,000 and a three-bed holiday apartment in the Balearic Islands. will be lowered.
The Cornish property is priced at £3.3 million but is on the market for £400,000.
Meanwhile, a three-bed holiday apartment in the Balearic Islands costs less than half the price of a similarly sized holiday lodge in Windermere (£849,000).
Kate Sparton, 68, is thinking of selling her two-bedroom holiday home in Calablanca, Menorca, but fears she won’t be able to sell if non-EU nationals are charged a huge surcharge. are.
A 100 percent tax would make rocket boosters cheaper than real estate prices in Spain, which is famous for its affordability. A five-bed coastal villa in Andalusia is currently being advertised for just under £400,000, but its price tag is £800,000.
You can buy a three-bed holiday apartment in the Balearic Islands for around £399,879. This will also be doubled
A two-bed apartment in this complex in Malaga currently costs £282,096 but could end up costing £564,192
She told MailOnline: “I’ve been holidaying here for 25 years and finally bought my own house eight years ago.”I’m approaching 70 so I hope to sell within a few years. I was thinking of buying one, but I don’t think anyone would want to buy one at this tax rate.
“To be honest, it’s scary. Menorca is very much a tourist island and seems to be facing difficulties on all fronts. The Balearic Islands also attract many German and Spanish holiday home owners from Madrid. I feel like this is really at the expense of non-EU people.
“I support the economy by hiring local Spaniards to paint my house and do plumbing work. I don’t take anything to the local supermarket.
“All that will happen is that I will leave my house empty and ultimately in disrepair. That is in no one’s interest. This is a disaster for everyone and British tourism It will completely decline.”
Real estate agents warned that the measures would deprive local businesses of income from foreign tourists and have a negative impact on Spain’s economy.
Sean Woolley is a British expat living in Marbella and runs Cloud Nine Spain, which sells “luxury” properties to wealthy buyers.
He told MailOnline: “Keeping in mind that tourism is Spain’s biggest export and the country collects huge tax revenues from people who move to Spain in search of better quality, what are the “We need to be careful what we wish for.” life.
“Yes, they need to look after themselves, but they need to be careful not to alienate foreigners who have contributed to the creation of wealth for everyday Spaniards who want change. there is.”
British holiday home owner Kate Sparton said she was “horrified” by the proposal.
The 68-year-old is thinking of selling her two-bedroom villa in Calablanca, Menorca, but worries she won’t be able to do so now.
But he noted that the policy would still need to be passed through Spain’s parliament, which would be “not an easy task” given that Mr Sánchez lacks a real majority.
Jose M. López Ábalos, a lawyer at Malaga Solicitors, echoed this message, saying: “For the time being, British people have nothing to worry about.”
He dismissed the plan as “a seditious policy that won’t solve the housing problem” and suggested it would take “months, if not years” to go into effect and may never come to fruition. .
He added that it would be desirable to “incentivize new construction, cut taxes and cut local council bureaucracy”.
Welsh musician Gomer Evans suggested there are plenty of holiday homes in Spain that could be converted or are under construction instead.
“A housing shortage in Spain?” That’s nonsense,” he said. “Literally hundreds of thousands of villas and luxury apartments are being illegally built and abandoned.”
Home buyers in Spain are currently expected to pay fees and taxes equal to 10-12% of the home price, depending on location.
Sanchez said the new 100% tariffs will help “prioritize housing security for our residents.”
Sean Woolley, who runs a luxury real estate agency, said Spain should be “careful of its wishes”.
Welsh musician Gomer Evans has suggested there are many unbuilt holiday homes in Spain that could be replaced.
He shared a photo of an empty house near his villa in Marbella.
He pointed out that in 2023 alone, non-residents from outside the EU bought 27,000 houses and apartments in Spain “mainly for speculation purposes, not for living there.”
He said this was “something we cannot afford given the situation of shortages that we are experiencing.”
Spain has seen an increase in large-scale demonstrations over the years, with disgruntled locals blaming a lack of housing, while opportunists are buying up homes and renting them out to vacationers, leaving them vacant for much of the year. I leave it alone.
Stay in Spain is granted to British nationals and other non-EU nationals planning a stay of more than 90 days, subject to fees and proof of financial stability.
Mr Sanchez’s sweeping plan to tackle the housing crisis was announced yesterday, outlining 12 measures focused on reforming the construction industry, ensuring affordable rents and providing incentives for people to follow rental guidelines. Showed.
This includes transferring the land to a new social housing corporation, which the government says will be used to build thousands of new affordable rental homes.
Protesters hold a banner reading “Mallorca is not for sale” during an anti-mass tourism protest on May 25, 2024.
Spanish Prime Minister Pedro Sanchez speaks in Madrid on January 8, 2025
Sanchez said the company will start implementing more than 30,000 Saleb homes in the first half of this year, of which about 13,000 will go into effect immediately.
The government also wants to offer incentives to people who renovate their flats to make them available for long-term use, and to “repair” vacant properties for additional “affordable rentals”.
It is hoped that the exemption from income tax for owners who rent out their homes based on a ‘reference price index’ will foster a healthier rental ecosystem.
To ensure Spaniards have access to housing before wealthy people outside the EU, the proposal also includes measures to “restrict” the purchase of homes by people “not resident in our country”.
This means stricter regulations against seasonal rental scams, discouraging people trying to illegally make the most of Spain’s lucrative tourist season.
“The purpose of all these measures is clear. What we want is to protect our citizens and find a better balance between tourism and investment, two activities important for the economy,” Sanchez said. he said.
“Also, logically, access to housing. This is a constitutional right of the people and a legitimate objective of a government that we say wants to make housing the fifth pillar of the welfare state.”
Mr. Sanchez assured that the increased powers given to the state to purchase real estate and land will be backed by a guarantee that all housing built by the state will remain public property indefinitely.
The aim of this ambitious plan, he insisted, was that “what is built and renovated with public funds will always remain the property of the Spanish people and never fall into the hands of predatory funds.”