Additional Coverage:
- Spain will tackle its ‘rich landlords and poor tenants’ problem by hiking property taxes to 100% for non-Europeans (newsbreak.com)
Spain is implementing new measures to tackle its severe housing crisis.
The government plans to impose a 100% tax on property purchases by non-EU residents. This aims to free up more housing for Spanish citizens, who have faced rising prices and a shortage of affordable homes.
Prime Minister Pedro Sánchez also proposed tax exemptions on affordable housing for landlords and increased taxes on flats rented to tourists.
Spain’s housing shortage is attributed to a lack of buildable land, limited supply of ready-to-build land, and a thriving tourism industry that has led to landlords prioritizing tourists over local tenants.
The government is also cracking down on short-term rentals and investigating Airbnb and Booking.com for potentially inflating housing prices.
For decades, Spain has grappled with a housing crisis, exacerbated by the 2008 property market crash. The government believes these new measures will address the social and economic consequences of the crisis.