Among the most controversial measures is the creation of a tax of up to 100% on properties purchased by foreigners from countries outside the European Union. The aim is to curb real estate speculation and expand access to housing for Spanish citizens, at a time when the availability of affordable housing is one of the country’s major social and economic concerns.
In recent years, Spain has faced a housing crisis exacerbated by the high demand for tourist properties and real estate speculation. In 2023, around 27,000 properties were bought by non-residents from outside the European Union, such as citizens from the United States and the United Kingdom. According to Sánchez, these properties are not being used as primary residences but as profitable investments, primarily for short-term rentals through platforms like Airbnb.
“There are too many Airbnbs. What is missing is housing,” the Prime Minister stated at a housing event in Madrid, where he presented a series of proposals to ease the impact of the crisis on the real estate market. Sánchez emphasized that speculation has been one of the main causes of the lack of affordable housing and that the most affected regions are those attracting the highest tourist flows, such as Barcelona, Madrid, and the Mediterranean and Atlantic coasts.
The proposal for a tax of up to 100% on properties purchased by foreigners outside the European Union aims to make such purchases less attractive. If approved, the measure would represent one of the highest taxes in Europe for international buyers, marking a significant shift in how the country handles foreign capital entering the real estate market.
In addition to the tax for foreigners, the Spanish government plans to introduce other significant changes to address the housing crisis. Among the key measures are:
Short-Term Rental Taxation:
Sánchez announced that property owners who rent out properties for short stays will face higher taxes, being taxed as businesses. The measure aims to regulate the tourist rental market, which has contributed to the reduction of permanent housing supply and the increase in rental prices in various regions of the country.
Expansion of Housing Supply:
The government recently created a public housing agency responsible for managing 3,300 homes and 2 million square meters of land for the construction of new homes. This initiative is part of a broader effort to increase the availability of affordable housing and meet the needs of the population.
Review of Real Estate Laws:
In addition to the tax measures, Sánchez also mentioned the need to review the laws governing the real estate market in Spain to ensure that the right to housing prevails over purely commercial interests.
The Prime Minister’s proposals have sparked mixed reactions. Real estate companies have expressed skepticism about the effectiveness of the measures. Gilmar, one of Spain’s largest real estate firms, stated in a statement that the initiative “lacks details on how it will be implemented” and argued that “the type of property purchased by citizens from third countries is very different from the housing needed to solve the crisis.” For the company, the measure seems more like a political strategy than a practical solution to the problem.
In the political arena, the proposals also face challenges. Sánchez’s government, which operates as a minority coalition, has yet to approve the budget for 2025, which may hinder the implementation of the changes. Nevertheless, his coalition partner, the left-wing party Sumar, has expressed support for the initiatives but emphasized that they are insufficient. “We want much more,” stated the Minister of Culture, Ernest Urtasun, one of Sumar’s key voices.
Spain is one of the world’s most popular tourist destinations, attracting millions of visitors each year. However, the rise in tourism has had significant side effects on the real estate market, especially in historic cities like Barcelona and Madrid. The proliferation of properties for short-term rentals has driven up prices and reduced the availability of housing for local residents.
The new measures could directly impact the tourism industry, one of Spain’s most important sectors for the economy. Experts warn that the introduction of high taxes could discourage foreign investment in the real estate sector and negatively affect tourist flows. On the other hand, supporters of the proposal argue that prioritizing housing for residents is crucial to ensuring the long-term sustainability of Spanish cities.
The implementation of the proposed measures will depend on careful political maneuvering and the government’s ability to overcome resistance both in parliament and within the private sector. Furthermore, it will be necessary to ensure that the new regulations are effectively applied, avoiding loopholes that could be exploited by investors or real estate companies.
In the meantime, the housing crisis in Spain remains a central issue in the public debate, reflecting broader tensions between economic development, housing accessibility, and urban sustainability. Pedro Sánchez’s proposal places Spain at the center of discussions on how countries can address similar challenges in an increasingly globalized and interconnected world. It remains to be seen whether the measures will be sufficient to alleviate the crisis or whether new strategies will need to be adopted.
