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Spain's Socialist Prime Minister has pledged to completely ban non-resident Britons from buying homes in the country.
Speaking at a Socialist Party speech in the Extremadura region of western Spain, Pedro Sanchez said on Sunday: 'We are going to propose that these non-EU foreigners, who neither they nor their families live here and who therefore only speculate with these houses , and houses, it is forbidden to buy them in our country'.
Sánchez's comments follow his announcement last week of a 12-point program to tackle the mounting housing crisis, which has left locals furious over the lack of available housing.
The measures include a 100 percent increase in property taxes for non-EU foreigners buying property in Spain.
Home buyers in the country are currently expected to pay fees and taxes worth between 10 and 12 percent of the price of the house, depending on where it is located.
Sanchez said the new rate would help “prioritize the availability of housing for residents.”
He noted that in 2023 alone, non-residents from outside the EU bought 27,000 houses and apartments in Spain, “not to live in them, but mainly to speculate.”
He said this is “something that, in the context of the shortages we are experiencing, we cannot afford.”
Prime Minister Pedro Sanchez has vowed to ban non-resident Britons from buying homes in Spain as he desperately tries to tackle the country's housing crisis
Tenerife locals hold signs expressing concern about the impact of mass tourism, October 2024
Protesters march and shout slogans against the Formula 1 Barcelona Fan Festival in central Barcelona, Spain, Wednesday, June 19
Sanchez's proposals would have to be debated and approved by parliament.
Spain has seen mass demonstrations increase year on year, with aggrieved locals decrying the housing shortage, while opportunists buy up homes and rent them to holidaymakers, or leave them empty for most of the year.
Residence in Spain is open to British nationals and other non-EU citizens wishing to stay for more than 90 days, subject to fees and proof of financial stability.
Sanchez's radical plan to tackle the housing crisis, presented last week, also outlined measures aimed at reforming the construction sector, ensuring affordable rents and offering incentives to those who follow rental guidelines.
This includes the transfer of land to a new social housing agency that the government says will be used to build thousands of new affordable rental homes.
Sanchez said the company will begin integrating more than 30,000 Sareb homes in the first half of this year, including about 13,000 immediately.
The government also hopes to 'rehabilitate' vacant properties for additional 'affordable rent', and offer incentives to those who renovate apartments and make them available for longer periods of time.
A protester holds a sign reading “Canary Islands have a limit” as thousands march on Las Americas beach during a demonstration against mass tourism in Arona on Spain's Canary Island of Tenerife, on October 20, 2024
Demonstrators in Alicante protest against overtourism in the Spanish city, in July 2024
It hopes that an income tax exemption for owners who rent out their homes according to the 'Reference Price Index' will promote a healthier rental ecosystem.
In an effort to ensure that Spaniards gain access to homes earlier than wealthy non-EU citizens, the proposals also include a measure to “restrict” the purchase of homes by people who 'do not live in our country'.
This should be strengthened with regulations on seasonal rental fraud, discouraging those illegally trying to make the most of Spain's lucrative tourist season.
