The news of Sánchez’s twelve measures to protect the housing market in our country has been the most read this Tuesday among English media such as ‘Financial Times‘, ‘The Guardian’ or ‘The Telegraph’. Specifically, the proposal of the President of the Government to limit the acquisition of homes in Spain by non-EU foreigners and non-residents – including the increase in the tax burden up to 100% of the value of the property – has been the one that has captured the attention of the British.
In the third quarter of 2024, foreigners (including EU citizens) bought 24,700 properties in Spain. That is, 15% of the total.
The nationality that buys the most? The British, who cover 8.5% of all foreign transactions, ahead of Germans, Moroccans, Poles and Italians, according to data from the College of Registrars of Spain.
More tax burden and regulation to prosecute fraud
This morning, the United Kingdom media reported that the Spanish Government will increase the tax burden that they will have to pay in the event of a purchase up to 100% of the value of the property, in line with countries such as Denmark or Canada. And they also focused on the fact that regulations will be tightened to prosecute fraud in seasonal rentals.
‘Financial Times’ recalled that our country is and has long been a popular destination for vacation home buyers. This, the media pointed out, has contributed to the increase in property prices in Spain.
“Public outrage is growing over the difficulty of finding affordable housing to buy or rent, property prices are skyrocketing and new construction is lagging far behind demand,” the business newspaper summarized this morning.
The Guardian’ focused on Sánchez has not yet offered more details about how the plan would work or when it would be finalized and sent to Parliament for approval. And The Telegraph, for its part, recalled the end of the ‘golden visa’ or ‘golden visas’ for those foreigners who invested at least 500,000 euros.
A drop in the ocean
In statements to ‘FT’, Antonio de la Fuente, managing director of Colliers, pointed out that it is “unlikely” that the proposal will alleviate the “tensions” in the real estate market, and has pointed out that the 27,000 annual property purchases by part of non-EU residents are compared to the total of 26 million homes in Spain. “It’s a drop in the ocean,” said the expert.
In fact, the expert expressed doubts about whether the measure would ever become law, although he added that the “uncertainty and noise” generated by the proposal would prompt some individual and institutional real estate investors to turn away from Spain and look elsewhere.