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Thousands of locals in the Canary Islands held protests last year over unsustainable tourism Alamy

Spain plans to introduce a 100% tax rate on some holiday homes

The government aims to offer more social housing, improve regulation and provide more support to renters

SPAIN IS PLANNING to introduce a 100% tax rate on homes purchased by non-EU residents as part of a suite of measures to address the housing crisis.

The leftist government unveiled the plans yesterday, which encompass a building boom and tax hikes on the owners of tourist rentals.

They aim to offer more social housing, improve regulation and provide more support to renters, Socialist Prime Minister Pedro Sanchez told an economic forum in Madrid.

Supply is lagging far behind demand in the sector that consistently ranks among top concerns in Spain, scarred by a market bust that accompanied the 2008 global financial crisis.

New homes put on the market have trickled to around 90,000 per year as the country records 300,000 new households, Sanchez said.

The prime minister announced the transfer of two million square metres of land to a newly created public company to construct “thousands and thousands” of affordable social housing units.

Social housing makes up only 2.5% of Spain’s total stock, whereas in EU peers France and the Netherlands it is 14% and 34% respectively, Sanchez said.

The premier announced higher taxes and tighter regulation for tourist apartments, often blamed for reducing the availability of residential properties and causing rents to spike in the world’s second most-visited country.

“It is not fair that those who own three, four, five apartments for short-term rental pay less tax than hotels,” Sanchez said.

Sanchez also promised a tax exemption for owners who rent their properties according to the official index, even in areas not declared under market tension.

His government passed a flagship housing law in 2023 aiming to boost the construction of social housing, cap rents in areas under the greatest market pressure and inflict penalties on owners who leave their properties unoccupied.

But rents have continued to climb, increasing by 11% in 2024 according to real estate portal Idealista.

The specific of the 12 proposals have not yet been disclosed in full, but they will need parliamentary approval to be passed into law.

Since Brexit, British people with homes in Spain have been restricted to stays of a maximum of 90 days in every 180-day period, unless they are registered as tax residents.

It was an unwelcome consequence of the referendum for those who previously enjoyed freedom of movement.

Meanwhile, Spaniards and other European Union nationals can stay in Britain for up to 180 days without a visa.

The limit on the length of time Brits can now stay has affected retired people as well as young people looking to work remotely from Spain for extended periods.

With reporting by AFP

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    Mute Ben dover
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    Jan 14th 2025, 11:37 AM

    I suppose the housing crisis in Spain is a FFG problem that SF could fix overnight?

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    Mute Brendan O'Brien
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    Jan 14th 2025, 11:40 AM

    @Ben dover: There are nearly 6.5 million second homes there. That would appear to be the problem.

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    Mute Chop Chop
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    Jan 14th 2025, 11:52 AM

    @Brendan O’Brien: Boomers, like you, are the problem.

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    Mute Big Beats
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    Jan 14th 2025, 12:05 PM

    @Ben dover: bore off troll

    33
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    Mute Ger Whelan
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    Jan 14th 2025, 12:21 PM

    @Ben dover: Alright Ben..if FF/FG didn’t cause this countries housing crisis then who did?.

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    Mute Ben dover
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    Jan 14th 2025, 12:51 PM

    @Ger Whelan: banks, developers, opportunistic investors, michael lynn, greed, feeling of invincibility. At least spread the blame to those who deserve it.

    23
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    Mute Ger Whelan
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    Jan 14th 2025, 1:16 PM

    @Ben dover: The blame goes to the top. Those who didn’t do their jobs correctly and let the banks and opportunistic investors in. That’s the various government who slept at the wheel and ignored everything that was happening.

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    Mute Thomas Sheridan
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    Jan 14th 2025, 1:21 PM

    @Ben dover: Would it be too much to expect similar legislation here.
    There is plenty of evidence of Asian buyers purchasing property in dublin without even seeing it, but relying on Asian students livestreaming a viewing back to them.
    The source of their funding would also have to be questionable.
    I won’t hold my breath because FFG, as well as most of the opposition are anti private buyers.

    23
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    Mute Martin Kenny
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    Jan 14th 2025, 1:21 PM

    @Dave G Doe: tax is for non eu people, read the article

    20
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    Mute Ian
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    Jan 14th 2025, 1:37 PM

    @Ben dover: SF rent free in your little mind lmao

    10
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    Mute Thomas Sheridan
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    Jan 14th 2025, 1:48 PM

    @Brendan O’Brien: On the face of it, getting rid of 2nd homes seems a great solution. A large number of these homes are Spanish owned, on the coast, and family owned. They are used to get out of the searing temperatures in summer and often permanently for retirement.
    There is undoubtedly pressure on locals trying to buy housing in these areas. But without holiday homes, many of these areas would be economic wastelands, and locals wouldn’t be living there anyway.
    Holiday homeowners contribute hugely to the Spanish economy and local employment in particular.
    The cost of property is also considerably less than in Ireland, and they continued to build during all our 12 years of building stagnation. Illegal immigration is also a significant issue.
    They have nothing to learn from us in Ireland.

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    Mute Fergus O'Donnell
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    Jan 14th 2025, 1:56 PM

    @Dave G Doe: sure you do.

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    Mute Damien Leahy
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    Jan 14th 2025, 3:56 PM

    @Ben dover: as if the housing crisis in Ireland is not ffgs fault. Be wide will ya

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    Mute Ben dover
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    Jan 14th 2025, 4:48 PM

    @Damien Leahy: sorry, i only speak english.

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    Mute Damien Leahy
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    Jan 14th 2025, 6:11 PM

    @Ben dover: what part didn’t you understand? Should I get out the crayons to explain it to you?

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    Mute JoeJoe Kilbride
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    Jan 14th 2025, 7:42 PM

    @Fergus O’Donnell: he spends so much time on here he wouldn’t have time to get the bus into town never mind whizz around the Med. Sad really that someone craves attention so much

    2
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    Mute Vincent Hickey
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    Jan 14th 2025, 9:03 PM

    @Fergus O’Donnell: he’s probably in a bed sit on benefits in the arsehol@ of nowhere

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    Mute Liam Foy
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    Jan 14th 2025, 11:50 AM

    It’s unfortunate fffg are blind sided by the fact most important fact of the article, non citizens introduced by Mr Michael Noonan as finance minister can buy up Irish properties, that what mostly caused high rents, reduced supply, but well done Spain is going to tax these non residents 100%, we recently start taxing them roughly 10%. There no hope for us. But lots of hope for Spain these vultures will dump houses onto a the market increasing supply.

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    Mute JoeJoe Kilbride
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    Jan 14th 2025, 7:44 PM

    @Liam Foy: the article doesn’t mention non-citizens, it mentions non-EU residents, massive difference

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    Mute Percival McClintock
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    Jan 14th 2025, 12:54 PM

    We need a government like Spain’s.

    66
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    Mute ben wu
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    Jan 14th 2025, 12:39 PM

    Worth noting that a lot of ex-pats living there, voted heavily for Brexit, not understanding what sort of fallout would ensue.
    ETIAS was the most obvious one, this one is just gonna hit them even harder.

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    Mute Brian D'Arcy
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    Jan 14th 2025, 12:56 PM

    @ben wu: They were told what would happen and tgey claimed that they were being bullied, numerous programmes told them about it.

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    Mute Thesaltyurchin
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    Jan 14th 2025, 1:42 PM

    @ben wu: Anyone with property they had in Spain that voted for Brexit is a m0r0n really.

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    Mute Thomas Sheridan
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    Jan 14th 2025, 1:54 PM

    @Thesaltyurchin: In fairness, they were misled by their politicians.
    Their main motivation was to deal with uncontrolled immigration that they wrongly blamed the EU for.

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    Mute Harry Callahan
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    Jan 14th 2025, 2:24 PM

    @Thesaltyurchin: my British neighbour in Spain voted for Brexit. Asked him why…..to put the great back into Britain was his response!! Can’t argue with that sort of ignorance and stupidity.

    34
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    Mute Ann Reddin
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    Jan 14th 2025, 3:40 PM

    @ben wu: Was going to leave a comment about British immigrants, oh sorry, I mean expats, who voted for Brexit. Again, their decision to vote yes, is really working out for them lol.

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    Mute JoeJoe Kilbride
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    Jan 14th 2025, 7:48 PM

    @Thomas Sheridan: they CHOSE to be misled, to believe the lies. The information was in the public domain but they called it project fear.

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    Mute ben wu
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    Jan 14th 2025, 9:45 PM

    @Ann Reddin: ‘a rose but by any other name’
    UK was very involved in drafting ETIAS prior to Brexit vote. Nothing of significance was changed after they left, other than it being ratified, and then enacted.
    Those drafts were in the public domain if anyone cared to read them, and the politicians certainly knew.
    Complaining afterward that the EU was punishing them, is simply laughable.

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    Mute Gary Kearney
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    Jan 14th 2025, 1:24 PM

    A funny thing is that the British people who lived in Spain most of the year, but were UK residents, flew back to the UK to vote for Brexit.
    They were warned about what would happen.
    These are people who live there but do not speak any Spanish at all.
    The pensioners, I feel for as they are what are called swallows, the come south for the winter. The rent holiday lets for the winter months, or live in ones the own and go back to the UK when the weather is better. Then they rent out the apartment or house to tourists.

    42
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    Mute Alex
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    Jan 14th 2025, 8:31 PM

    @Dave G Doe: It is true. It’s easily verifiable with the age of voters for Brexit. UK is known for host a stupid retired population.
    Now they will pay 100% taxes.

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    Mute Always Question
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    Jan 14th 2025, 1:33 PM

    Spain encourages national pride, been living here for years and sometimes it irks (not being Spanish). But they look after their own and are proud of who they are and do not accept the emigration of the youth as blithely as the Irish. I believe we spent so long oppressed, we ended believing our oppressors.

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    Mute Thesaltyurchin
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    Jan 14th 2025, 1:43 PM

    @Always Question: So much enlightenment never realised.

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    Mute Paul O'Mahoney
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    Jan 14th 2025, 2:53 PM

    @Always Question: Are you out of your head, always one of highest young unemployment figures in the EU. Poor pay , poor education and college options , Spain has been welcoming people for decades without anything been done, now something might be done, note might, and this won’t change one thing..

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    Mute JoeJoe Kilbride
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    Jan 14th 2025, 8:02 PM

    @Always Question: I find it very difficult to believe you’ve been living in Spain if that’s the opinion you’ve formed, not only does Spain have a Minister of Inclusion, in November ‘24 they approved a new Immigration Regulation to improve the integration of migrants in work, education, and family. Also, Spain has a youth unemployment rate of 28%, double the EU average. Have you even BEEN to Spain?

    https://www.funcas.es/wp-content/uploads/2024/04/Asensio_13-2.pdf

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    Mute Always Question
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    Jan 15th 2025, 1:39 AM

    @JoeJoe Kilbride: It is true about my life and the comment is based on observations and speaking to Spanish people. What the government has done, i.e. Pedro Sanchez , is follow EU directives. The difference between the Irish and the Spanish is the Irish actually believe that what the EU is doing is ok.

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    Mute Fergus O'Donnell
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    Jan 14th 2025, 1:55 PM

    Should do the same here in places like Connemara.
    It’s ruining communities.

    31
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    Mute SirMr
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    Jan 14th 2025, 1:33 PM

    Ex-British expats will likely suffer the most, and it’s understandable that they might not receive much sympathy, given that many in this age group voted for Brexit while living in Spain. However, some sympathy must be extended they are virtually stuck in a no-man’s land. The UK is currently facing severe social and economic challenges, with a high cost of living, healthcare issues, and significant social unrest due to rapid multicultural changes. The outlook is not promising, so one must have some sympathy for their situation.

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    Mute Toby Thedogk
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    Jan 14th 2025, 11:49 AM

    If they bring in a EUR 100 per person tourist tax and have minimum pricing on a pint of EUR 3 there will be no shortage of accommodation.

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    Mute Ger Whelan
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    Jan 14th 2025, 12:21 PM

    @Toby Thedogk: they’ll also lose out on billions of tourist revenue a year. Lose lose situation

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    Mute Me Me
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    Jan 14th 2025, 1:31 PM

    @Ger Whelan: Many would accept the loss as a good bargain to get a decent lifestyle back.

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    Mute Chutes
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    Jan 14th 2025, 1:54 PM

    @Chutes Idiot: Yes my little idiot!

    Tell us all about GDP and what it means for Ireland, maybe focus on the inequality part for education?

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    Mute Chutes
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    Jan 14th 2025, 1:59 PM
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    Mute William Jennings
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    Jan 14th 2025, 3:35 PM

    The hypocrisy of these people knows no bounds. Blocking beaches and protesting tourists while relying on their money to prop up your economy is the very definition of having your cake and eating it. Spanish protesters complain that foreigners are straining infrastructure and facilities, conveniently ignoring the fact that tourists are the ones paying for it through taxes, fees, and spending. It’s not as if locals alone are footing the bill for roads, utilities, and services – those “intrusive” visitors are pouring money into the system that Spaniards take for granted. The hypocrisy here is glaring: they want the benefits of tourism without the presence of tourists. 3 million Spanish people are employed in the tourist sector and it makes up 15% of the total GDP. This is a very bad policy.

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    Mute Paul Reidy
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    Jan 14th 2025, 11:02 PM

    Brits be ripping with expat taxes. Another great Brexit success story. Lol.

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