Spain plans to impose a 100% tax on homes purchased by non-EU residents in a bid to tackle the country’s deep-rooted housing crisis.

Spanish Prime Minister Pedro Sanchez on Monday proposed a series of measures aimed at easing a nationwide housing shortage, high rents and rising house prices, with foreign homebuyers and mass tourism seen as exacerbating housing pressures.

Socialist leader Sanchez spoke at a forum on the matter Says access to housing is one of the main challenges facing Spanish society And there is a risk of divisions between communities.

“The West faces a decisive challenge: not to become a society divided into two classes, rich owners and poor tenants,” he said. He noted that house prices in Europe have risen by 48% in the past decade, almost double. as household income.

“We are facing a serious problem with huge social and economic implications that requires a decisive response from society as a whole, with public institutions taking the lead,” he said. Government comments.

Sanchez, who announced 12 reforms aimed at tackling the crisis, said the government’s proposals include a plan to ensure tourist apartments are taxed “like businesses” and a proposal to impose a 100% tax on the value of homes bought by non-EU residents .

He said the changes would help make housing more accessible and affordable across Spain.

“Non-EU residents bought 27,000 apartments in Spain (in 2023). They did it not to live in, but to speculate, to make money with them, which we cannot afford given the lack of resources,” Sánchez told Spain Financial Times. The forum “Housing, the fifth pillar of the welfare state” took place in Madrid on Monday evening, Review reported by El periodico and translated by Google.

He added: “The Progressive Coalition Government has always welcomed foreign investment, but we want foreign investment to be productive, encourage innovation and create new jobs, not be used for speculation, as if it were a financial asset or a bank deposit. “

Other measures taken by SanchezPlans for a coalition government led by Spain’s left-wing Socialist Workers Party and including the far-left Soumare party include tax breaks for landlords, affordable rents and more protections for existing tenants.

He announced plans to build more public housing and ensure existing social housing remains state property. He said a program would also be launched to renovate vacant houses and rent them out at affordable prices.

The Prime Minister did not provide any further details on how the tax on non-EU homebuyers would be implemented, nor when such a proposal could be submitted to Parliament for approval.

Housing shortages, rising prices – and a strong perception that holiday home owners and vacation rentals are exacerbating the problem – have prompted a strong public reaction in Spain, along with tourist hotspots on the south coast, the Canary Islands and areas including Barcelona and Alli Kanter.

Report Tourists told to “go home” Incidents of foreign tourists being sprayed with water cannons also occur from time to time, with locals urging authorities to address the problem of “over-tourism”.

However, the Spanish economy relies on tourism for growth and employment, with the sector accounting for more than 13% of GDP and approximately three million jobs. According to the Spanish statistics agency, the number of international tourists arriving in Spain reached an all-time high in the first 11 months of 2024, with more than 88.5 million arrivals. Internal Medicine.

“Not only is tourism driving consumer spending, high accommodation occupancy rates are also driving record hotel investment,” said Maartje Wijffelaars, senior euro zone economist at Rabobank. said in analysis Last September.

“We expect Spain’s GDP growth to moderate somewhat as tourism growth is expected to lose some momentum. However, growth is expected to remain strong over the coming quarters and years and above the Eurozone, reaching 2.7% in 2024 ), 1.9% in 2025, and 1.5% in 2026,” she said.