Spanish Prime Minister Pedro Sanchez has proposed banning non-residents from non-EU countries from buying housing in the country unless they live there permanently.. This initiative is aimed at overcoming the housing crisis and reducing speculation in the real estate market..

Bloomberg writes about this. According to him, such purchases are mostly speculative, contribute to rising prices and worsen the affordability of housing for Spaniards. In 2023, citizens of countries outside the EU purchased about 23 thousand properties in Spain. Although this represents only a small share of the market, the government believes that limiting such transactions will help reduce pressure on the housing market, especially in popular tourist areas.

In addition to the ban on the purchase of housing by non-residents, Sanchez proposed the introduction of a 100% tax on the purchase of real estate for citizens of non-EU countries if they live in Spain for less than 183 days a year. In addition to this, the government plans to implement a 12-point plan that includes the following measures:.

Sanchez's proposals need parliamentary approval, which could be difficult due to a minority coalition government. However, the government plans to actively consult with experts and attract support from other political forces.

Experts note that the share of non-residents buying property in Spain is only 4-5% of the total number of transactions. At the same time, it is in resort regions that speculative purchases have a significant impact on prices. Restricting foreign home purchases could be a significant step towards reducing this impact.

British citizens, traditionally the largest group of non-EU property buyers, could be the main group affected by the new measures. They often buy holiday homes on the Spanish coast or for retirement. Wealthy Latin Americans who have been actively buying luxury real estate in Madrid in recent years may also be subject to restrictions..

Spanish law defines non-residents as those living in the country for less than 183 days a year.. Ukrainian refugees staying in Spain for a long time are not subject to the proposed law.