Walter Finch
PRIME Minister Pedro Sanchez’s plans to shut non-EU-non-resident buyers out of the Spanish property market could affect a number of areas popular with Brits and Americans.
The Costa del Sol is the destination most popular for Brits buying properties valued at over €1 million, with Mijas Pueblo seeing 20% of all demand coming from the UK, according to data from idealista.
The study reveals that foreigners account for more than 60% of luxury property searches in key coastal areas and the Balearic Islands.
Brits significantly outpace demand from Finland and Germany in this area, while Elvira in Marbella is also a favoured spot.
READ MORE: Pedro Sanchez now wants TOTAL ban on non-EU home purchases in Spain with two exceptions
Here, UK buyers make up 10.6% of demand, though lagging significantly behind both Germany (16.2%) and the Netherlands (15.7%).
Over in Ibiza, Brits again come in third behind the Netherlands and Germany for demand in Sant Josep.
Meanwhile, both Brits and Americans see significant demand in Soller, Mallorca (19.3% and 11.3% respectively), while Tossa de Mar in the Costa Brava and Oltamar-Cucarres in Calpe are also US favourites.
A significant reduction in demand from Brits and Americans in these areas could see house prices falling – at least at the upper end of the market.
Sanchez has justified the proposed non-EU ban, which is still in the discussions stage, on the grounds that it would curb speculation from driving up house prices to unaffordable levels.
Sanchez said: “We are going to propose to ban non-EU foreigners from buying houses in our country, in cases where neither they nor their families reside here and they are just speculating with those homes.”
However, with foreign purchases being dominated by nationals from EU member states – namely Germany and the Netherlands – it’s debatable how much impact the measure would have.
READ MORE: PM Pedro Sanchez to raise tax on Airbnb tourist flats and non-EU residents buying property in Spain
German buyers dominate many areas, particularly in the Balearics where they account for over 50% of foreign interest in some locations.
Meanwhile, Dutch buyers show strong interest in Alicante province, particularly in Moraira where they make up 27% of searches.
The report, crunching data from late 2024, shows Spain’s luxury property market continues to grow, with over 45,000 properties listed for sale above €1 million, of which more than 20% are priced above three million.
What the English tabloids are broadly referring to as the “100% tax on Brits” is merely a silly proposal that has precious little chance of ever seeing the light of day. Very little support, because the impact would be minor, at best.
It’s also worth pointing out that this proposal would NOT apply to any resident non-EU buyer, which accounts for a mere fraction of a fraction of buyers. But again, it’s chances of seeing the light of day are slim at best.