January, 14, 2025-05:18
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The government proposed implementing a tax on foreign buyers, including British citizens, by increasing the amount due at the time of purchasing property to a total of 100 percent of the property's value. Currently, buyers in Spain are required to pay various costs and taxes ranging from 10 to 12 percent of the property's price, depending on the location. Sanchez stated that this new tax would help "prioritize housing availability for residents. "Hehe pointed out that in 2023 alone, non-EU residents acquired 27,000 homes and apartments in Spain, "not for living, but mainly for speculation. "He emphasized that this is "something we cannot sustain in light of the shortages we are facing."
Spain has witnessed escalating protests year after year, with frustrated locals lamenting the lack of housing while opportunistic investors buy homes to rent to tourists or leave vacant for most of the year. Residency in Spain is open to UK nationals and other non-EU citizens wishing to stay longer than 90 days, contingent upon payment of fees and proof of financial stability. Sanchez unveiled a bold strategy today to tackle the housing crisis, presenting 12 initiatives aimed at reforming the construction sector, ensuring affordable rentals, and providing incentives for compliant landlords.
This includes transferring land to a newly formed Public Housing Company, which the government claims will build thousands of affordable rental units. Sanchez revealed that in the year’s first half, the company will begin incorporating over 30,000 Sarib properties, with about 13,000 available immediately. The government also plans to "rehabilitate" empty properties for additional affordable rentals, offering incentives for those who renovate apartments to keep them available for extended terms. An income tax exemption for owners who rent in line with the "Reference Price Index" is expected to promote a more stable rental market.
To ensure Spaniards can access housing before affluent non-EU buyers, the proposals include a measure to "limit" home purchases by individuals who "do not reside in our country. "This This will be reinforced with stricter regulations to combat fraud in seasonal rentals, discouraging those who seek to exploit Spain's profitable tourism market unlawfully. "The goal of these initiatives is clear. We aim to protect citizens and strike a better balance between tourism and investment, both vital sectors for our economy," Sanchez stated during the announcement.
"Additionally, access to housing is a constitutional right for our citizens and a legitimate goal of our government as we strive to make it the fifth pillar of our welfare state. "Sanchez asserted that the government's enhanced authority to acquire properties and lands would be underpinned by a guarantee that all state-built housing remains public property permanently.
The ambitious plan's aim is that "what is developed and renovated using public funds will always belong to the Spanish people and will not fall into the hands of speculative funds," he insisted. The government seeks to mobilize around 6 billion euros in ICO loans and guarantees to aid in constructing an additional 25,000 new homes. While increasing housing supply, the government is also targeting private enterprises involved in unsustainable rental practices. Sanchez emphasized the necessity of prioritizing residential spaces over tourism, promising to reform tax policy "so that tourist accommodations are taxed as businesses."
He argued that "it's unfair for those owning multiple short-term rental apartments to pay lower taxes than hotels or workers. "Jaume Colleoni, the mayor of Barcelona, has set a precedent with his bold decision to eliminate all short-term apartment rentals for tourists beginning in November 2028.Companies like Airbnb have come under fire from anti-tourism activists, with residents concerned about being priced out of homes by the surge of property owners charging exorbitant rental