Spain intends to impose a 100% tax rise on non-EU people buying a property in the country - this will include the UK.
President Sanchez has announced a series of 12 "ambitious" measures to combat the dramatic rise of holiday rental properties and to address shortages in the housing market for locals.
The measure that has already attracted the most attention in the international media is a proposal to effectively ban non residents from outside the EU from buying properties for speculation or holiday rentals, with a 100% tax on the purchase of properties.
The UK media, rather predictably, has sensationalised this as being a ban on Brits buying homes in Spain, but it applies to non residents from all countries outside the EU. Buyers from outside the EU will still be able to buy a property to live in themselves, but only after obtaining resident permision to live in Spain.
Holiday home income will also be taxed more heavily, bringing it in line with hotel businesses, but landlords who choose to rent their properties as long term, affordable and permanent homes, will pay less or no income tax. The aim is to redress the balance and enable more homes to be available for locals living and working here. There will be more money available to regions enabling them to carry out more inspections and a crackdown on illegal holiday rentals and those involved in fraudulent rentals.
In addition, there were also announcements of state guarantees available for landlords wishing to rent to younger tenants, who might not otherwise qualify for a home, as well as more protected homes for low paid workers. There will also be efforts to renovate empty homes and bank repossesions, which will be made available to the local market.
There was also welcome news about a housing scheme for Valencia, helping the area get back on its feet after the floods.
