Spain's Prime Minister Pedro Sánchez has announced plans to impose a tax of up to 100% on properties purchased by non-residents from countries outside the EU, such as the UK. This "unprecedented" measure aims to tackle the country's housing crisis, which Sánchez believes is exacerbated by non-EU residents buying properties primarily for investment purposes. In 2023, non-EU residents bought 27,000 properties in Spain, contributing to the shortage of available homes for local residents.

The proposed tax is part of a broader package of measures designed to improve housing affordability in Spain. Other initiatives include tax exemptions for landlords who provide affordable housing, transferring over 3,000 homes to a new public housing authority, and implementing stricter regulations and higher taxes on tourist rentals. Sánchez emphasized the need for fairness in taxation, pointing out that it is unjust for individuals owning multiple short-term rental properties to pay less tax than hotels.

While the details of the tax plan have not yet been finalized, the government has indicated that it will be presented to parliament for approval after thorough consideration. However, Sánchez has previously faced challenges in securing enough votes to pass legislation. The proposed tax has raised concerns among some stakeholders, who argue that it may deter foreign investment in the Spanish property market.

The Spanish government's efforts to address the housing crisis reflect a wider concern about the impact of foreign property ownership on local communities. By prioritizing affordable housing for residents, the government aims to prevent a society divided between wealthy landlords and struggling tenants.