Costa News Spain Breaking News | English News in Spain.
Prime Minister Pedro Sanchez wants to be even stricter with potential homebuyers outside of the EU. They will face a complete ban, unless they already live in the country or have family members there.
Sanchez announced a 12-point housing plan on Monday. This included a stamp duty tax of 100% for non-EU citizens who purchase property.
The Prime Minister, as part of his efforts to ease the affordable-housing crisis in the country on Sunday, went a step beyond in an address in Extremadura.
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Sanchez said: “We will propose to ban non EU foreigners from purchasing houses in our country in cases where they or their families do not reside here, and they’re just speculating on those homes.”
Real estate agencies in popular tourist areas like Costa Blanca were very concerned about his announcement.
If these proposals are implemented, the UK’s market – which is the leading foreign property buyer outside of the EU – will be severely affected.
Real estate associations have said that last Monday’s announcement had created uncertainty. Some UK buyers of off-plan property had inquired about withdrawing if necessary.
In recent years, Madrid has seen an increase in wealthy Latin American buyers purchasing high-end properties in the capital.
Sanchez announced a list last Monday of measures he proposed, promising to provide more social housing, to improve regulations and to give more support to tenants.
Sanchez said Spain faces a deficit of around 200,000 houses per year based upon current demand.
He blamed measures passed by the conservative Partido Popular during its time in government in 2008, when the financial crisis erupted.
The question of whether the coalition government led by socialists will pass a 100% tax or total ban is moot, as it lacks the majority.
