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Spain Considers 100% Tax for Foreign Property Buyers
Description
Spain has said it wants to introduce a tax of up to 100% on property purchases for anyone from outside the European Union (EU) who is not a resident in the country.
That could mean a lot of potential buyers from places like Asia, the UK and the US being priced out of the market.
And that's exactly the idea.
Many Spaniards have said that they can't afford to buy property because of the number of homes being bought by foreign buyers.
Prime Minister Pedro Sánchez recently shared the plan, saying that in 2023, 27,000 apartments and houses around Spain were bought by people from outside the EU.
He said these buyers didn't purchase the homes to live in, but to make money from them.
Spain is a popular vacation destination for people around the world, and many like to buy holiday homes for themselves.
But other buyers put their properties on the short-term rental market, using sites like Airbnb.
This has meant that there are fewer homes for local people to buy. The shortage of properties in popular areas has seen prices increase, with many locals unable to afford higher prices.
Sánchez also said he wants to increase taxes on landlords who rent their properties with companies like Airbnb.
However, the prime minister's plans may not become law; for now they're just ideas.
British people who spoke to the BBC after hearing the news weren't happy with these plans.
Michele Hayes from Manchester, who has been looking at properties in Spain, said: "How many working Spanish people want to live in holiday homes in these tourist areas anyway?"
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