The Spanish government has announced bold new measures to tackle the country’s housing crisis, with a particular focus on restricting property purchases by non-EU foreigners. Prime Minister Pedro Sánchez unveiled these plans on Monday, aiming to prioritize housing for locals and curb speculative buying.
100% Tax on Non-EU Foreign Buyers
One of the most controversial proposals is a 100% tax increase on the value of properties purchased by non-EU foreigners who do not reside in Spain. This tax would represent a tenfold increase compared to the current property taxes in Spain, which are 10% for new builds and 7% (in Andalucia) for resale properties.
• 27,000 properties were purchased by non-EU foreigners in Spain in 2023, primarily for speculative purposes.
• The most affected areas include Ibiza, Marbella, and Barcelona, which are already popular among international buyers.
Sánchez emphasized that housing cannot be a tool for speculation, stating: “It’s unfair for Spaniards to struggle with housing affordability while properties are being snapped up for short-term profit.”
Regulating Short-Term Rentals
Short-term holiday rentals have also come under scrutiny as they heavily impact the availability of long-term housing. The government has proposed several measures to address this issue:
1. Increased taxes on short-term rental properties to match the tax burden of hotels.
2. Stricter regulations on tourist rentals, especially in saturated areas.
3. Reducing the number of short-term rentals, following Barcelona’s example, where a complete ban on holiday rentals will take effect in November 2028.
As Sánchez noted, “There are too many Airbnbs and not enough homes for locals.”
Social Housing and Empty Properties
Spain’s social housing stock accounts for just 2.5% of all housing, far below the levels of countries like the Netherlands or France. The new measures aim to increase this percentage and make better use of vacant properties:
• 30,000 properties owned by Sareb, remnants of the 2008 financial crisis, will be repurposed for social housing.
• Thousands of empty homes will be renovated and made available for affordable rent.
Housing Prices and the Crisis
In Spain, housing prices rose by 8.1% year-on-year in Q3 2024, placing an increasing burden on local residents. This price surge is primarily driven by a significant imbalance between supply and demand, exacerbated by foreign purchases and short-term rentals.
Across Europe, housing prices have risen 48% over the past decade, a trend Sánchez described as “unsustainable and socially divisive.”
What Does This Mean for Buyers?
These new regulations could significantly impact the Spanish real estate market:
• Non-EU buyers may face prohibitive costs with the proposed 100% tax.
• Short-term rental properties may lose their appeal due to higher taxes and stricter regulations.
• Local residents could benefit from an increased supply of affordable housing created by the new policies.
How Marbella Fits Into the Picture
Marbella, as one of the most popular destinations for foreign property buyers, could see significant changes under the new regulations. While the city’s luxurious lifestyle remains a major draw, the proposed taxes and restrictions may require buyers and investors to carefully reconsider their options.
Find Your Dream Home in Marbella!
The Move2Marbella team is here to help you navigate these evolving regulations. Whether you’re looking for a home or an investment opportunity, our experts will guide you to the best options available.
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