Draft bill submitted for 100% tax on property..
 

Looks like this is moving forward - 100% tax on property purchases for non-EU/non-resident buyers

https://www.spainenglish.com/2025/05...-eu-nationals/

There is now rampant inflation in Spanish house prices—mine was valued at 182,000€ last October—this month, according to Idealista, it has increased to 253,000€ —around 40%. I have never seen anything like it in 25 years of living here including the building booms.

https://www.spanishpropertyinsight.c...rranean-coast/

Re: Draft bill submitted for 100% tax on property..
 

It says in your second link that my town has seen the highest property price increase over the last 12 months, 17.6% and I can believe it. A flat in my block was advertised for sale recently, the asking price being more than double what I paid 8 years ago. It's mad, we don't even have many tourist rentals here, Airbnb or otherwise.

Re: Draft bill submitted for 100% tax on property..
 

The problem with Spain is that (as everyone knows who has lived here over 25 years) it can have ridiculous booms and equally terrible busts. Whereas the UK has highs and lows it never suffers the extremes of Spain. I remember back in early 2000s where everyone thought they were on a winner then suddenly....people were paying mortgages which exceeded the property worth by 50% . I bought back in 1998. Since then had 3 different places. The last was in 2018. The owners bought it for 96.000 and sold for 66.000 they were so upset when they were at the notary they didn't even make eye contact with me.!
Meanwhile the new proposals that I read said nothing about the 100% tax on non EU non resident - simply that there would be taxes increased on this group. What was interesting was the 21 % vat on tourist rentals plus new tax on vacant properties which will be determined by electricity use. This could mean that non principal homes might pay a new tax. Either way even if the proposals take time to get voted on and approved some kind of tax is going to filter through to all of us.

Re: Draft bill submitted for 100% tax on property..
 

What proposals did you read? Have you got a link? All the ones I have read talk about the 100% on purchase and the 21% on tourist rentals...

Re: Draft bill submitted for 100% tax on property..
 

I read from 20 minutos and el diario and they didn't actually mention the non resident aspect other than say that they would be tax for that group but no actual details. I guess Spanish readers are more focussed on how it affects them.

https://www.google.com/url?sa=t&source=web&rct=j&opi=89978449&url=https://www.20minutos.es/noticia/5715183/0/asi-es-propuesta-psoe-para-acabar-con-crisis-vivienda-penalizar-los-pisos-vacios-bonificaciones/&ved=2ahUKEwj79qf85sCNAxXNSKQEHWXDAzEQFnoECB0QAQ&u sg=AOvVaw1qbDPRN4gXJuxYQIStOhHw

Re: Draft bill submitted for 100% tax on property..
 

This covers a lot of relevant and interesting points

https://www.idealista.com/en/news/fi...cannot-be-done

Re: Draft bill submitted for 100% tax on property..
 

Unfortunately this is simply an opinion piece written by and for a site that deal predominantly with foreigners ( as they say) so of course it is negative. In fact it pretty much sounds as if it were written by partido popular who make these remarks about xenophobia and scapegoats. It fails to mention how similar measures applied in Catalonia have actually seen a reduction in sale prices. It also fails to mention the positive aspects such as reduced overall taxes for landlords renting long term at acceptable rents etc. Plus Sanchez made it clear it was designed to restrict large scale investments by foreign hedge funds who simply invest in new builds with zero intention of actually using property.

Re: Draft bill submitted for 100% tax on property..
 

Ive just had a read through the first link and it seems rubbish to be honest.
We all know that the Spanish own more second homes that are rented or left empty than any foreigners.
I agree with speculators being taxed heavily and its something the Uk should also do (cant abide these shows where MrX says he owns 30 plus properties as a retirement income when all of them are mortgaged) but thats not the point here.

Taxing any non EU foreigner 100% of the purchase price on a property is just going to do one of two things.
Clever Spanish companies will be selling lifetime interests in property to foreigners but the property will remain in the Spanish company name and can only be sold or traded through them.
People will sell up and flock to any country that doesnt have these types of law.
I can think of a few countries east of here that will welcome people and the property prices are already alot lower than here and these places have good summers as well.

My 2c

Re: Draft bill submitted for 100% tax on property..
 

The Sanchez government is so weak they can't even pass the 2025 budget let alone something like this. He can barely hold his hopeless coalition together so yet again this is just him pretending to do something when in reality he can't do anything meaningful.

Re: Draft bill submitted for 100% tax on property..
 

No sign of prices going down but how long it can last, I don't know. I see the same in Catalonia and nothing has worked to reduce prices, every time you look it's getting more expensive.
Non EU residents/citizens aren't really the problem and more and more people are getting EU passports. We see it in Ireland and the demand is huge, so be it the wealthy Americans or people who have been resident for 5 years, they all eventually become EU residents and might want a holiday home.
https://www.irishexaminer.com/busine...-41625949.html

Re: Draft bill submitted for 100% tax on property..
 

That's not true. The opposite infact. The big thing that PSOE are pointing out is that in Catalunya who have actually implemented la ley de viviendas prices are dropping.
https://www.google.com/url?sa=t&sour..._Upb9LBdN-FqpI

Re: Draft bill submitted for 100% tax on property..
 

Impose massive taxes on second/holiday homes, basically on all properties that are not used as someone's primary place of residence.

Basically the idea should be that investing in second properties is the worst investment out there. Once that is the general outlook you will know that the legal changes have finally done their job.

Re: Draft bill submitted for 100% tax on property..
 

I do kind of agree even though I am someone with two properties. Once you reach the point where people who can often not afford to travel for holidays nor have a stable home become second class citizens whilst wealthy foreigners ( like me) contribute to reducing affordable housing then it makes sense to tax us. So many Brits go on about how cheap Spain is mainly because they can point to the absence of high council taxes. If Spain taxed people who own properties more it would certainly prevent such escalation of prices. I always thought I would spend time between the two countries but I am beginning to think that is not morally right.

Re: Draft bill submitted for 100% tax on property..
 

Not true and that's rent you shared.
https://www.catalannews.com/business...-in-early-2025

House prices going up further and hardly any stock.

Re: Draft bill submitted for 100% tax on property..
 

There are EU laws though and it still doesn't create more housing. Of course you can tax the German pensioner who has a villa in Mallorca but then he'll just move there permanently and the shop assistant still doesn't have housing on the other side of the island. People can also be renting a property where they live permanently so technically it isn't a 2nd home if it's the only home they own within the EU. What's next, tax people who are always on holiday because they aren't living at home?

We also talk about wealthy holiday home owners. Some people often just have a bit of land they inherited or use as a weekend getaway, these people are far from wealthy but it's still not their main residence.