Alex Trelinski
A BILL to increase tourist flat rental taxes in Spain which also features a new 100% levy on non-EU property buyers has been registered in Congress.
The PSOE socialist party group presented the first written draft of package on Thursday which features the wide-ranging housing reforms unveiled by Prime Minister, Pedro Sanchez, in January.
The bill seeks to promote ‘measures that enable access to housing, since we are facing one of the largest problems our society is currently confronted with’.
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Earlier this year, Sanchez talked about ‘an excess of Airbnb and a lack of housing’.
House prices are continuing to rise as demand is exceeding supply.
In the first quarter of 2025, notaries reported that 14% of purchases came from non-Spaniards with that percentage far higher in areas like Alicante province.
The bill talks about consolidating housing as the fifth pillar of the Welfare State, guaranteeing the right to decent and adequate housing, and cutting down on speculators.
There are three main planks, namely more new housing to address the lack of supply estimated at up to 450,000 homes, limiting tourist properties and foreign buyers, and increase aid to vulnerable groups.
The proposed measures included VAT on tourist flat rentals being increased to 21% and the controversial property purchase tax of 100% for non-EU nationals and non-resident foreigners.
That initiative is aimed at reducing speculators and investors buying up properties and follows in the wake of Spain earlier this year abolishing the Golden Visa.
The tax would straight away double the final price but the bill will not affect entrepreneurs or professionals ‘exercising their economic activity’.
Financial penalties are also planned via income tax hikes for people who keep empty properties.
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Hi there, would that 100% levy be retrospective, or apply to new properties purchased once the law passes? Also would it be for the whole of Spain, or just the “tourist” centres. For instance, I own a property in Rute. Andalucia, a small rural town that welcomes tourists. Would it, according to the information you have, be subject to the new tax?
Now I’ve seen it all!
First we get financial penalties for non EU buyers of properties.
Then
“Financial penalties are also planned via income tax hikes for people who keep empty properties.”
The Costas are full of 2nd homes – the vast majority of which are owned by Spanish! That’s going to go down well!
” In the first quarter of 2025, notaries reported that 14% of purchases came from non-Spaniards ” How is that split
EU: Non EU buyers?