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Government announce new law on foreign purchases.

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Government announce new law on foreign purchases.

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Old Jan 15th 2025 | 7:44 pm
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Default Re: Government announce new law on foreign purchases.

Originally Posted by Lynn R
I really wish people would stop talking as if this proposal to impose much higher taxes on non resident, non EU property purchasers was the only measure the Sánchez Government is proposing to help alleviate the housing crisis. What about the measures designed to allow more social housing for affordable rents to be built, ensuring that properties built using public funds stay in public ownership, raising taxes on rental income received from short term tourist letting, giving income tax exemptions to landlords who are prepared to rent long term and restrict rent increases to the Official Price Index, etc?
Agreed, when you consider that it's estimated that over 11% of Spanish nationals own second homes.
If Spain can build what in essensence is a huge amount of 'council' houses and only allow residents to rent them after means testing. That will at least be a start.
Taxing foreigners is always a headline grabber and the average immergrant and national will focus on that. One with horror the other with delight.

I'm not sure basically doubling the cost of foreigners second homes will actually happen but you never know.

We live in what was once just built for second homes and tourists and was originally 100% British owned when new, two block of low rise flats (apartments if you are posh). The village they are in is away from the main town and a good 10m drive from any good shops and bars.
Over the last 10 years more Spanish have moved in because the value dropped by 50% and more during the crash. Even now the values are not at the original values and we now have around 85% permanent occupation.
There have been a few Scandinavian snapping them up and offering more than the asking price. But that's stopped now as the realise they can't flip them for a profit.

I've said before that the non res tax is a joke.
Everyone who has a second home (Spanish included) should be charged alot more.
My suggestion is up it to 5% (then do the 19 or 24% depending if you are EU or not)
Also up the purchase tax to 20% but give discounts back to the original rates if you are living in the property or are willing to rent out as social housing (not long term to other EU nationals.)

But what do I know...
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Old Jan 15th 2025 | 8:17 pm
  #47  
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Default Re: Government announce new law on foreign purchases.

One thing I'd like to see is public funds being made available to enable the compulsory purchase and renovation of homes left empty (and I mean for years, not holiday homes) or even, where homes or buildings have become derelict, the power to seize the site without compensation. Even in large towns like mine where the demand for housing is so severe (I know in small villages where there is no work few Spaniards would want them) there are so many sites like this, many big enough for a small apartment building of 4 or 6 units to be built on. It would not only help with the housing crisis but also improve the environment.
 
Old Jan 15th 2025 | 8:36 pm
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Default Re: Government announce new law on foreign purchases.

Originally Posted by Lynn R
One thing I'd like to see is public funds being made available to enable the compulsory purchase and renovation of homes left empty (and I mean for years, not holiday homes) or even, where homes or buildings have become derelict, the power to seize the site without compensation. Even in large towns like mine where the demand for housing is so severe (I know in small villages where there is no work few Spaniards would want them) there are so many sites like this, many big enough for a small apartment building of 4 or 6 units to be built on. It would not only help with the housing crisis but also improve the environment.
We've heard that in Ireland but just because someone owns land or a derelict house doesn't mean they are wealthy, so you are again punishing people who own something. Sometimes the land belongs to a family and they might want to keep it for their kids, or often people don't have the money to renovate until later in life, sometimes it's the council that blocks planning applications etc.. Even when people try and put a mobile home in their garden it's blocked by the council.
 
Old Jan 15th 2025 | 8:48 pm
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Default Re: Government announce new law on foreign purchases.

Originally Posted by Moses2013
We've heard that in Ireland but just because someone owns land or a derelict house doesn't mean they are wealthy, so you are again punishing people who own something. Sometimes the land belongs to a family and they might want to keep it for their kids, or often people don't have the money to renovate until later in life, sometimes it's the council that blocks planning applications etc.. Even when people try and put a mobile home in their garden it's blocked by the council.
There's a street not far from me (a very nice street with some very large, well kept old townhouses on it) where two houses that had become derelict had to be demolished and the plot have stood empty for a couple of years now with weeds flourishing on them and rubbish accumulating (it would make me very unhappy if I lived in one of the really nice houses on either side of them), another which has been deemed to be in a dangerous condition and the pavement in front of it has been taped off for well over a year, meaning pedestrians have to walk in the road to pass it. That's just in one street, I could list dozens of similar examples. Sorry, but your excuses are just untenable in a situation where there is such a desperate need for social housing and people are having to live in horribly overcrowded situations with small children sleeping on mattresses on the floor.
 
Old Jan 15th 2025 | 9:06 pm
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Default Re: Government announce new law on foreign purchases.

Originally Posted by Lynn R
There's a street not far from me (a very nice street with some very large, well kept old townhouses on it) where two houses that had become derelict had to be demolished and the plot have stood empty for a couple of years now with weeds flourishing on them and rubbish accumulating (it would make me very unhappy if I lived in one of the really nice houses on either side of them), another which has been deemed to be in a dangerous condition and the pavement in front of it has been taped off for well over a year, meaning pedestrians have to walk in the road to pass it. That's just in one street, I could list dozens of similar examples. Sorry, but your excuses are just untenable in a situation where there is such a desperate need for social housing and people are having to live in horribly overcrowded situations with small children sleeping on mattresses on the floor.
No excuses but your example is basically punishing poverty and then claiming to help fight poverty. Rather than taking aways things from people, the government can offer incentives to people who might currently not have the money or offer to buy at a fair price. I don't know the situation around your derelict plots but every individual case would need to be reviewed.

There are thousands of people who have space in their gardens who would happily create extra living space but councils block applications. Rather than punishing people you need to reward people for creating extra living space.
 
Old Jan 15th 2025 | 11:20 pm
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Default Re: Government announce new law on foreign purchases.

Does anyone genuinely believe that any of the 100% raised in taxes won't just be siphoned off somewhere else?

Its an absolutely terrible idea. A better idea would be uitlising the empty houses all over the country, creating an economy that would stop people migrating to the cities to live in overcrowded conditions. You can't 'tax' your way out of a problem.
 
Old Jan 15th 2025 | 11:24 pm
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Default Re: Government announce new law on foreign purchases.

The amount raised wouldn't be massive. It's designed to deter investors from buying property for short-term rentals.
 
Old Jan 16th 2025 | 12:29 am
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Default Re: Government announce new law on foreign purchases.

It's not worth getting excited about this proposal because the Sanchez coalition is so weak they struggle to pass much legislation let alone something like this. He can't even get a budget through.
 
Old Jan 16th 2025 | 1:24 am
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Default Re: Government announce new law on foreign purchases.

Originally Posted by Lou71
It's not worth getting excited about this proposal because the Sanchez coalition is so weak they struggle to pass much legislation let alone something like this. He can't even get a budget through.
Exactly. All this is just attention grabbing headline manipulation. Only worth reading when (if) it becomes law. Until then, just a an old fart.
 
Old Jan 16th 2025 | 2:09 am
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Default Re: Government announce new law on foreign purchases.

Originally Posted by EU.flag
Exactly. All this is just attention grabbing headline manipulation. Only worth reading when (if) it becomes law. Until then, just a an old fart.
Given that every political party is wanting an immediate set of laws to do something about the problem it stands to reason something will happen and it certainly isn't going to be - Oh yeah, let's make it easy for foreign folk to buy houses. The most likely is that the laws will become more Draconian if either of the extreme parties get their way. Sumar and Bildu want to prevent sales to all non residents and to increase tax on second homes.
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Old Jan 16th 2025 | 7:12 am
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Default Re: Government announce new law on foreign purchases.

Originally Posted by 1sexsmith
Given that every political party is wanting an immediate set of laws to do something about the problem it stands to reason something will happen and it certainly isn't going to be - Oh yeah, let's make it easy for foreign folk to buy houses. The most likely is that the laws will become more Draconian if either of the extreme parties get their way. Sumar and Bildu want to prevent sales to all non residents and to increase tax on second homes.
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Plus 1 for Sumar and Bildu then...
 
Old Jan 16th 2025 | 8:21 am
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Default Re: Government announce new law on foreign purchases.

Pretty easy to become a resident and purchase property but then people complain there are too many foreign permanent residents.
 
Old Jan 16th 2025 | 5:51 pm
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Default Re: Government announce new law on foreign purchases.

Originally Posted by Fred James
The amount raised wouldn't be massive. It's designed to deter investors from buying property for short-term rentals.
As you say the amount of money would, in the grand scheme be small and at a level of 100% it would be a deterant not revenue generation. The easiest way to solve the Airbnb problem is simply outlaw it or place restrictions that make it very hard to do ( I know steps are already underway in some areas but to me these seem slow)
 
Old Jan 16th 2025 | 8:28 pm
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Default Re: Government announce new law on foreign purchases.

Originally Posted by Moses2013
Pretty easy to become a resident and purchase property but then people complain there are too many foreign permanent residents.
I wouldn't call it easy for 3rd country nationals, even if they fulfil the criteria for a visa, which is obviously out of the question for a huge chunk of people.
 
Old Jan 16th 2025 | 8:48 pm
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Default Re: Government announce new law on foreign purchases.

Originally Posted by Red Eric
I wouldn't call it easy for 3rd country nationals, even if they fulfil the criteria for a visa, which is obviously out of the question for a huge chunk of people.
I replied in relation to this Sumar and Bildu want to prevent sales to all non residents and to increase tax on second homes.
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That would mean all EU citizens/Spanish people living and working abroad. 3rd country nationals who have the money to buy expensive villas will always find other ways and Spain needs foreign investment.
 


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