Spain plans a hefty tax on properties purchased by non-EU citizens, impacting British buyers significantly.
Madrid: So, it looks like Spain is planning to hit British buyers with a massive tax on property purchases. They’re talking about a tax that could be as high as 100% of the property’s value. Ouch!
The Spanish government announced this on Monday, saying it’s aimed at non-EU citizens who aren’t legal residents. Prime Minister Pedro Sanchez mentioned that this move is part of a strategy to tackle the housing crisis in Spain. Locals are feeling the pinch as foreign buyers, especially from the UK, are driving up prices.
There have been protests in various Spanish cities against tourists buying up homes, which often sit empty. Sanchez pointed out that many of these properties are bought not for living in but for making a profit, which isn’t fair to locals.
He didn’t go into details about how this tax would work or when it might be introduced in parliament, but he did mention other measures. These include tax breaks for landlords who offer affordable housing and stricter rules for short-term rentals.
Currently, buyers in Spain already pay between 8% and 11.5% in taxes when purchasing a home. With this new proposal, it could get a lot more expensive for British buyers looking to invest in Spanish property.
Since Brexit, UK citizens have lost some of their rights to live and work in the EU, and this tax is just another hurdle. It’s a tough time for those wanting to buy a slice of sunshine in Spain.
