Great to see a balanced and sensible explanation, I have been really frustrated with all the inflamatory headlines, even seeing property companies posting on social media to "buy quickly to avoid this tax!"... I live in Andalucia and resident so doesn't affect me, but this will never happen, that said, something HAS to happen or Spain faces a property bubble, and bubbles only end up one way!
Thank you for this informed video, I've been asking vendors selling properties and not really getting an informed answer. I appreciate informed videos like this.
Amazing. I think this is one Spain-related YT video where I've found the comments far more insightful than the video itself (and the video is very good), especially the comments from Brits currently living in Spain. Thanks.
Excellent and balanced readout. This feels like a headline grabbing political announcement to 'make the point' and tap into the growing concern around the housing shortage in Spain. I agree with your view that if elements of these proposals survive the legislative processes, they will target the big cities where well educated younger Spaniards want to see genuine opportunities for them to climb the housing ladder. And I for one totally understand this. Change is needed. Thanks for the vid. I've subscribed.
@cp4512 I disagree, Germany, Poland and France etc don't do this, so we should only implement it on the Spanish. Of course, the EU would have a fit and insist it's either implemented on all of them or none of them. In which case, sorry to our Dutch and Portuguese friends, but Brussels insists (of course it, a really clever government would implement it to appease the EU, but hold the money aside, and return it to the buyers when they sell up. But only the original amount.)
@YesYes-xb6he yes, poor Spaniards that can't afford to buy property in Spain won't be able to buy summer residences in the UK, that ought to teach them a lesson😂
Excellent presentation providing unbiased information, and thankfully no clickbait headlines claiming this proposal is anti-Brit. I have subscribed to your channel because I like your information based approach to this issue.
Remember all those poor people in Spain who had to demolish their beautiful houses due to corrupt politicians who had handed out Mickey Mouse authorisations defrauding the owners ?
Given the vast numbers of EU buyers in Spain- particularly from germany, denmark, holland and belgium historically, and now imcreasingly from eastern europe, i’m struggling to understand how slapping 100% tax on non EU buyers is going to help the domestic housing situation. A friend of mine was considering buying in spain a few years ago and we were struck by the number of urbanisations that were empty because they were ‘bank’ properties- development failed by bankruptcy. Surely making these available at reasonable cost to spanish citizens would be more helpful than blocking a small number of non EU buyers.
@@lulabellegnostic8402 oh EU nationals are next don't worry, we have already sent proposals to the UE to limit RE buys to "no residentes " this year may happen
The approach is multi-pronged incl utilization of bank held properties. Non EU, eg. US, institutional investors, like property funds, buying in Spain are the targets of the “100% tax”.
Thank you for this clear and concise explanation of the Foreign Buyers´ Tax. Recently , there was an article in the Daily Fail on this topic and all sorts of misinformation was swirling around in the Comments Section. Thanks to people like yourself, the information is now crystal clear.
@@joesoy9185 thank you. It can be very frustrating. Unfortunately when there is little information availability people try to fill in the gaps with guesses and the guesses spread faster than the facts! Please keep an eye my channel for updates on this, I will never be the first to break a story but I will take the time to check the details at source and give them consideration before speaking.
It makes my laugh when they blame the tourists for the high rental prices! They have been doing that here in Portugal for years. It's not the tourists who raise the prices, it's the greedy local owners, they see the tourists and raise the prices no matter what!
Interesting proposal. Here in Åland/Finland can real estate buy only residents (passport does not matter), other can’t buy even with 1000% tax. We spend 4 winter months on Tenerife, if this proposal will go trough, meaning rent will probably raise a lot.
Thank you for this as I am starting the process of applying for my NLV, renting initially and buying, so knowing this potentially won't effect me is great news. Thank you
@ Brits have been hamstrung by Brexit...before that many, if not most brits bought properties in Spain because it has a superior climate, plus its a short plane ride to be in the sun......
I think housing affordability (rental dominoed to home sale increases) when Air B&B became a thing around the world. The whole world was similarly effected before even Covid. Ban or heavily Tax/restrict AirB&B and housing could normalize.
Great balanced explanation, I am currently in negotiations on a country property in Inland Andalucia, Iznajar/Loja area. My concern is future tax implications that could be enforced as it will be partly a 2nd family home and holiday let.
2nd (holiday) homes are a luxury when we all have a housing price crisis. Our priority should be getting working young people onto the property ladder. It's a disgrace that a working couple can't dream of buying a house where they are from. The fault lies with the Banks for allowing people to borrow more than 2-3x salary (as was the case in the 1970s-1980s). That immediately pushed house prices up to match and did NOTHING to help anyone. Then the Buy-to-Let mortgages allowed landlords to buy everything up. Then we have places like Cornwall where tourist villages are simply Airbnb ghost towns in Winter.
Thanks for such a sensible video. I pretty much agree with all that you said. Young people and affordable homes is such a problem in many countries but it's exacerbated in Spain by very poor wages. It's not exactly true that there aren't affordable properties. I've seen thousands of properties for sale but they're not where young people want to live and many of them require expensive levels of restoration. Another infuriating practice in Spain is that property sellers get it in their heads that a property is worth some artificially high price and wont sell it for less even if it stays on the market for years or decades. Let's face it, it is a populist move by Sanchez and PSOE. How does a 100% property tax for non EU residents make it easier for younger Spaniards to afford these properties? Same thing is happening in my country of Wales. Welsh government is taxing second home (holiday home) owners to such an extent that they sell up. Only problem is the locals can't afford to buy the empty properties. If they could they would have done so in the first place; which brings me back to Spain and the capitalist concept of housing property. It's the Spanish home owners that have been getting rich by putting the selling prices up and up. People buy houses as investments and the prices are expected to increase. It's the biggest investment most people make and it's a disaster if the prices do anything but increase. Economies go crazy when house prices stall. The only way people on average earnings can do to afford property is to save but that's hard to do with the chicken shit wages in Spain. The other way is reckless mortgage lending but we did that in the noughties until the explosion in 2008. Nothing's changed. Rural Spain is emptying. I've seen dead and dying villages and small towns with my own eyes. Plenty of property nobody wants. Same thing has happened in Japan. Cities are swelling and prices go up with the law of supply and demand. The government will have to build or subsidise those that build. Identical problem in the U.K but the U.K government's building targets are absurd. We barely have any qualified bricklayers. Nope; It's just far easier for PSOE to tax foreigners. Can't touch those EU foreigners though because that's against the rules and would make you look like an unpleasant country. The slime of modern politics is pushing this agenda and has nothing to do with solving the underlying issues of Spain and home ownership.
100% tax is on the purchase. For example, if a flat costs €100,000, non-EU citizens will pay €100,000 in taxes, a total of €200,000. To bear in mind: - It is applied in areas with high tension or high demand. - New constructions are designed for the rich or for high salaries, as entrepreneurs want high returns. New developments start at €250,000 (small flats). - Many affordable flats are bought by people with a lot of money or investment funds, to then resell at a higher price. - There are neighbourhoods where more non-EU citizens live than locals. Mostly in rich areas. - Those who buy the most in Spain are Latin Americans (rich), Russians and Chinese (flats and commercial premises). In some cases, they use the Golden Visa to bring immigrants legally.
You are wrong, the problem is not airbnb flats, those are only 2% of the total amount of houses in Spain. The problem is the government hasn’t built any public housing in more than 15 years leaving the offer in the country left to none
Spainish authorities is definitely correct on cracking down. We wouldnt want such a beautiful country and culture to become like dog eat dog, private equity, Britain
Spain gets about 85 million visitors per year. It's the second most visited country in Europe after France. If the 100% tax is applied to non EU nationals like the Brits I don't see it causing huge problems for the property market in Spain. The EU, with a population heading for half a billion people and its wealthy northern Europeans will easily take up the slack. What it might do is stem the tide of retired people selling up lock stock and barrel in the UK and moving to Spain hoping that their state pension will stretch a bit further there. These type of arrivals don't bring much economic activity to the local economy with them.
If a part of demand for properties is taken away the value of property prices will fall. Those already with mortgaged properties will find themselves in negative equity. Yes, younger generations will be able to buy properties as house prices fall, but with the push against tourism industries, Spain's hospitality industry will decline. Transportation, food and drink establishments (bars, restaurants, takeaways etc.), hotels, tourist attractions all rely on visitors to pay employees wages. Those jobs that remain will be in high demand forcing wages downwards. Foreign investment will not want to invest into a country hostile to foreigners, particularly if specialists brought in from outside of Europe find themselves being heavily taxed. Other countries might also respond to these measures by treating Spanish citizens in a similar way. I agree with the sentiment, but the government must find another way to resolve the situation. The proposed measures will do more harm than good.
Well I have investment property in Spain and I'm selling up. If Spain does not want foreign investment nor UK tourists then no problem. I'm off to Florida. Nice video thanks
No problem for tourists to come so far. Spain's population more than doubles because of tourists. Canary Islands get 50% more tourists than Hawaii. It's a huge problem.
The proposal that you mentioned from PP IS WHAT HAS to be applied. The same I have seen in Germany, if politicians want to solve the housing problem they have enough land available and they must ease up on regulations. I talked with a large builder in Germany and he said that the regulations for building for the government is exasperating compared to when he builds for private property.
The housing issue in the West is an equality related problem not a foreign sales issue. Banks are the root of the cause and action needs taking against banks, but politicians are culturally weak...
This is also happening in Malta. Anyone can buy property at market prices, increasing prices. It is a positive thing for someone like myself who owns property, but it is getting out of hand.
No it doesn't. Southern European properties are being purchased by Northern Europeans for holiday homes. Walk through Barcelona any winters day and listen out for the different languages spoken.
Should do something similar in Norfolk. Since covid all those previously living inside the M25 have moved up the A11 now 'working from home' and scooped up all the housing sending prices beyond the range of locals.
Havent read the post, but think a 100% INCREASE in tax is the more likely scenario. SURELY. House purchase tax currently about 12-15000 euros. Lived in Spain 23yrs.
It is worth mentioning that in 2024, only 27,000 properties were sold to non-Resident non-EU buyers. Whilst this has made a lot of headlines, in reality this isn't the problem and won't solve the housing shortage. The real problem is the lopsided Spanish tenancy laws that protects the tenant whilst hammering the owner. The time and costs of eviction for a tenant with arrears is the reason many owners have turned away from long term rental and switched to vacation rental. Unless the law becomes more balanced, and gives owners the ability to evict a non-paying tenant, owners will keep their properties off the market.
Nah. Huge numbers of apartments owned by non-EU investment funds who suck the life out of local housing markets and then set the rates for sale and rental. Happening all over the world and must be stopped. Also big numbers of apartments owned by non-EU, non-residents who will have to sell. This will kill the stupid increases in house prices and increase supply virtually overnight. Low fruit for the Spanish government. Investors just have to suck it up. The balance is screwed.
@bogbay what I am saying is based on our exposure to this sector. My wife runs a rental agency in Costa del Sol, so she is very aware of what is going on the market. I have a number of clients in the real estate sector, as my company manages their websites. This gives us a valuable insight to the entire sales process, customer profile, and pricing.
@ I'm sure it does but it hasn't given you an accurate insight into why Spain is doing this. It has nothing to do with someone who is late with their rent. Only a landlord or an agent could come up with that.
Excellent video. Spain needs to remember that tourism has kept the country afloat for 50 years, mainly from the British. We have spent billions over there as a nation and continue to do so today. It’s unbelievable that people can just walk into our country and have things for free, yet Spain don’t want decent people with money who are willing to spend it in Spain.
Sánchez is the worst president we've had in Spain. Spanish citizens like me are tired of him. Immigration keeps increasing and we're exhausted from taxes
@ Well, I have to pay €550 per month as a social security contribution to work as a self-employed person. Then, for income tax (IRPF), we are paying 40% or more. And then, when you buy something, for example, at the supermarket, you pay more with VAT and other charges, adding up to over 50%. There's only one word for that, and it's called theft. Then they spend that money and give it as aid to those who do nothing in this country, like all the immigrants arriving in boats.
It's a proposal not a cert. They could tackle the villa and Air BnB issues but as usual want the tourism. Perhaps they could stop illegal immigration and actually build some properties. Ex pats fleeing the useless UK shouldn't be discriminated against.
@sduk451 Brexit cause all of that, what Spanish want to do is stop Chinese and Russia money and all laundry money they send into Spain to buy property, unfortunately because UK isn't part of EU anymore it's considered a 3rd country. Something has to be done not just in Spain but UK too. propertys have became a investment and that's wrong.
Excellent explanation, clear and concise. They could whack Air B&B, but want the tourism. Perhaps should should get off their a** and build some properties.
We have just returned from a viewing trip with the aim of purchasing in La Zenia this year but after hearing about these tax plans I feel we can’t trust the Spanish government to not introduce some kind of tax penalty on us in the future. As we wanted to spend up to six months abroad we are now going to look at Portugal or Italy.
Been visiting Spain 2 or 3 times a year for over 30 years, Torrevieja is one place I would never return to, it's like a cheap Brit ghetto. We only went because friends had property in La Zenia.
It's a good idea and at least a start, but it needs to be coupled with banning ownership of multiple properties by individuals (unless rented out long-term), banning short-term lets (domestic properties being used as hotels) and making it harder to borrow money. All of these measures would start to bring down the overinflated property prices. I would expect to see a lot more of these types of measures across Europe over the coming years as we transition from those who benefitted from the the ponzi of the past 40 years (boomers + gen x) to those voters coming through who did not. We need to recognise that shelter should not be treated as a speculative financial instrument. I wouldn't be surprised if voters demand price drops in coming years, which will mean a stark reversal of the Tory/New Labour years where they appealed to the house price inflation brigade. Interesting times...
They will be transferring 30000 properties held by Sarab (a state controlled bank that holds distressed assets from the crash) to public ownership for use as social housing.
Sanchez's proposal, 100% non-EU taxes, is one of twelve (1/12). Its objective is to reduce the price of housing (buying and renting), support social housing and make it more sustainable (consuming less energy).
Post Covid work from home across eu is what is crippling places like bcn…. If u lived in Eg Amsterdam u can now do that job from Spain and why not right?? Well that just brings the price of rent up as they don’t care due to the price of living being so cheaper and earning a foreign wage…. Other issue is bcn is enclosed and is hard to build in… there are places to rent and buy cheap they are just not in the centre. A place like BCN that was a shit hole pre Olympics and has massively boomed in the last 15 years is just late to the party of places like London Paris etc
As you rightly point out, "foreigners" come to work remotely in Spain, it is cheaper than in their country of origin and with their original salary (no salary from Spain). They don't mind paying a little more for rent, since it is still cheaper in their country of origin. In the end, the owner of the house will end up paying the same rent from their country of origin as in Spain, even so for the foreigner it is still cheap, due to the costs of living (food, water, etc.). But for a local or Spanish person, with a salary from Spain, the price of rent becomes unaffordable.
@ correct that’s why this narrative against foreigners is wrong, the issue comes from the top. Either for many people they have to accept they can’t live in the most desirable part of the city (Like they do in eg Paris and London) which btw is 100% better than it was 15 years ago or the government need to intervene… my guess is that people will largely have to accept it… it’s totally unrealistic to expect a 30% decrease in rental property against modern inflation….. most people though don’t take that in to consideration
Like the UK , Goverment is simply moving blame to the easiest target . I used to own property in Spain and loved it but Brexit and uncertainty simply made the situation untenable . Additionally Spain like most of Europe and the UK have sleep walked into an illegal migrant catastrophe and progressively in the area I lived thus level was highly visible . So , we simply live in Scotland , built a custom camper van and spend three months in Europe in the Winter and The rest in beautiful Scotland , 🏴without mass immigration as we simply don’t have a big country and what there is is mountainous …. Also this Scottish government as far as possible does look after its population .
Don’t blame the Spanish government one bit we should do the same here in Blighty oooh wait a minute we give houses away and let them live in 5 star hotels for free until they find one for them!Fantastic information buddy thank you for your content.
You're typical British right wing attitude is why we want the British to leave. Hypocrites as they want to go to Spain but always express their disapproval at others being in Britain, including the Spanish.
Can you clarify what does non EU , Non resident implies ? Does it mean that if you are Non EU and not resident this rule will apply or does it mean that if you are either of the rule will apply ?
@@dieselmonster it’s Non-Eu or Non Resident. If you are non EU you could become resident (while renting) and the purchase as a Resident. If you are an EU citizen then you avoid the tax anyway regardless of whether you are resident.
Sorry but to clarify, and I'd be really grateful for a response. I reside in the UK, but through an additional Irish passport have been able to retain EU citizenship. Therefore if the tax is enforced, as an EU citizen, despite being from the UK, is it your understanding I could avoid it, should I decide to purchase a Spanish property in the future? Thanks
@ that is my understanding (I suspect that the tax would be levied on all foreign purchases if it weren’t for free movement laws) It’s important to remember that, at the moment, everything is based on a few lines from a policy speech, however it seemed clear that the tax would not apply to EU Citizens. You have Irish citizenship regardless of where you reside.
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100% tax on non EU Property purchases is an excellent Idea. It will help slow down price increases. Other EU states should consider doing the same. It should be extended to all non EU citizens. Young EU citizens are being denied the opportunity to buy or rent a home and start a family. Non EU investors and retirees are part of the problem.
It could have a positive effect in some areas, especially popular cities like Barcelona but there are other areas where the economy is built around residential tourism where the effect could be negative. The likelihood is that in those areas the lost demand will quickly be replaced by growing demand from EU buyers however, if not then effect would be detrimental. If the local economy is built around tourism then removing the tourists might free up houses for people to live in but who would want to live there when there is no work?
@ There is a lot of pent up demand from EU boomer retires looking to move south including the remote areas. If Non EU demand is removed it will ease prices generally., not stop increases. Also as Northern EU retirees move south this provides some improvements for Northern states - Germany, Netherlands, Poland, Sweden, Finland, Ireland, etc which are also seeing huge property price inflation. This will help young northern EU kids get a home and start a family. EU economy benefits all round.
@ that does make sense, only the tax targets second homes/ property bought for rental. Retirees that meet the non-lucrative visa threshold could still retire to Spain and rent while they obtain residency and find a property. Many already do. Im sure many will continue to do so. Most of these people go to areas that are not experiencing the problems that Sanchez is targeting. The property stock in question is potential homes that are either left empty most of the year or rented out in short lets. I absolutely understand and agree that in highly populated areas with diverse economies (eg Barcelona) this 100% tax could be effective, although the big players from the US and China buying blocks, not individual apartments, would continue to speculatively invest through companies and trusts and so I expect that the actual impact would be minimal. I think the proposed crackdown on illegal Airbnb’s and tax incentives to reduce rents would be far more effective in tackling those problems. Where areas have been developed purely on the back of residential tourism, where lots of properties are second homes and most are empty for most of the year, the lost demand of non EU buyers for holiday homes will likely be met anyway from within the EU, it might have a small impact on rising house prices but I doubt it would bring them down. If the demand wasn’t met, the homes wouldn’t find their way to become general housing stock as there are limited career opportunities in these areas. Even more importantly, were these properties all to become permanently occupied the infrastructure would collapse. Hospitals and police etc are largely based on resident numbers not property count. It seems more likely to be a political decision rather than a workable economic policy.
Actually makes sense and we should do the same for those purchasing property who are non uk residents who do not plan to live in the building for at least 9 months of each year.
I live in Spain, we currently have our home on the market and are constantly looking for another home nearer to amenities! From what I have clearly seen there are thousands and thousands of places on the market, and I am talking low cost! Empty, abandoned, derelict, if Spain need to do anything for their own citizens it’s help them with the costs of renovations! Unless you have really spent time looking at what’s out there you wont have a clue! If you talk inland Andalucia for example, I am not being insulting in any way when I say this, but most properties at the low end of the market are stuck in a time warp. There is absolutely no shortage of houses! It’s just ridiculous to say there is! It’s the will to take an old property at a low price and get stuck in! If I was not 75 I would do it!
Indeed. I live here to as an expat. Many Spanish families owns several houses, and even when not counting the many houses only used for leisure as second or third home, 16% of Spanish houses are still completely unused. A HUGE reason for this is that Spain still hasn't sorted out the paperwork and ownership of millions of houses since the Franco regime. Trying to buy houses here in Spain often amounts to finding the many many people that are connected to the property through inheritance, often spread over many families. It's not uncommon that you have to find 15-20 people or more, that all has to agree on a price and wanting to sell.
@ yes but politically the people do not want to hear that. to put something on others is far more helpful. I was writing about the tax on things but lost my thread somewhere? But we have just had to have a new boiler the cost looks to be around 8000 euros all in, can we afford it? No ! But 21% of that is tax! The economy here is black, cash in hand cash in hand, That is another thing that needs sorting out. A huge rate of tax forces many to go cash in hand. They need to bring down the rate and stop so much black economy. we know it will always go on, but here it’s cash cash cash. Even at offices where they are collecting monies, example registering our car, that was already Spanish as we had it in canaries for 7 years. I had to pay someone to take me in our car to Motril to pay I forget how much? but cash please? It’s clear to me that the Spanish people do not abide by laws, and are not called out for it. Much of the taxes comes from the likes of me! We came by ferry from Fuerteventura to Cadiz and had to pay thousands in tax on our belongings, that we had paid tax on in UK, then Tax on in Canaries, then tax on in Spain. all the same old stuff! My advice to any one wishing to come here to live don’t bring anything ! Some of our stuff. Is years old, no longer worth the tax we had to pay on it! That’s not counting the thousands we paid in transport. We could buy a second house! lol 😂. Wise after the event you could say!
Spot on dude ! I used to have a property in Andalusia loved it, but Brexit as you have now found is The Terminator for UK home ownership in The EU. Sorry that age is leading to barriers to exit from the locality … as the quality of life surpasses UK significantly. However for a few tenacious people from Britain I agree with technology and access to water older properties are the way ahead in certain parts of Spain ….. but finally with global warming much of Spain is uninhabitable during the summer months and will …. Inevitably progressively become more so ….. and therefore the access to water older properties/ bore holes will become scarce …. So all in all , permanent residency is not a realistic option . We now have a self build luxury van that we use to winter in Spain / Portugal 🇵🇹 and summer , spring here in Scotland….🏴 . And like lemmings before us lots of others are doing the same …. And what follows is more taxation and restrictions on these vans ….. it’s simply economics if envy .
Before people come for Sanchez, please know what he's NOT saying.. He isn't saying not to become a resident first and then purchase your beloved property second to bypass the 100% tax. He isn't saying not to sell to other people who hold resident permits to bypass the 100% tax. He won't be saying that he's saying all of this to placate a portion of the population that is disgruntled by the perceived take over by non-EU folks in the country. In fact, I think it's a smart move. It calms them down on a sector that isn't causing them grief and Spain gets to protect a large portion of what's keeping their economy afloat, they can focus on building low-income housing, and it's a win-win for everyone. Because trust me, being a resident gives you more benefits than not PLUS you can live anywhere else in Europe. So Sanchez is doing all of us non-EU homeowners who are residents a HUGE favor. Don't come for that man.
Then you haven't met many locals. Granted, people who have lived in the island since at least the 70s do often own more than one property (which tend to go to children as they can't afford to rent on the open market) but large swathes of the working class and people who have arrived recently (last 10 years) are stuck paying 800-1000 euros a month for a two bedroom flat, if they are lucky enough to get that. Palma is even higher. The amount of people stuck at home or having to rent a room in a shared flat well into their 40s is getting larger and larger. As 5 year rental contracts are starting to expire, people are seeing rents double in many cases.
Very few Brits are actually buying property in Spain since the Brexit, I have a holiday home in Spain on a site of 168 properties, only 2 properties are now owned by Brits, in the past 2 years several properties have come up for sale and they have all been sold to so called EU citizens, so it's not the British that's to blame, its Freedom of movement that permits uncontrollable movement of EU citezens... so Taxing Brits at 💯 % more isn't going to improve the situation.
The 100% tax doesn’t appear to be directed at EU citizens or residents. I don’t think community law would allow it. The changes to rental laws will be universal.
eventually, when foreigners realise that they are only welcome in Spain to pay taxes etc.the problem will be solved itself, but the clever Spanish government will then realise where the money comes from and pays the bureaucracy in Spain!
It won’t be 100pc rate taxation , but it could go up as much as 20 or 30 pc….it’ll slow down the real estate market sales and probably driving prices down. If it benefits the Spaniards people the it should go through.
It will make house prices cheaper, but a lot of estate agents and related jobs may be lost. It will probably have a hit on the economy which would also affect the job market.
i have a small apartment in spain i have owned for over twenty years we are surrounded by hundreds of other apartments mostly owned by spanish people who have let them out for years mostly for cash only we have always followed all the rules including paying proper buildings insurance most of our spanish nieghbours have a really careless attitude towards these rules these are they people need to control?
@@barryyeatman5341 to be fair, sanchez crackdown on illegal rentals (that he announced at the same time as the tax) is directed at all nationalities. We stopped renting a property when the licences came in and yet it’s really irritating to see people continue illegally.
@@SpainunfilteredSobre todo cuando son extranjeros especuladores. Compran para alquilar directamente a más turistas y ni viven en España. No respetan las leyes, las normas, solo quieren hacer dinero. Además son agresivos y groseros contra los españoles. Ningún país necesita gentuza así.
Lucky you, you can get an EU passport that allows you the freedom to live and work anywhere across the EU. As an EU citizen you wouldn't pay this tax. I am very very jealous, I'm stuck on this rapidly sinking island :(
@@marklewis7732 I’ve appreciated my Spanish bloodline so much! But I doubt this will take place… sounds crazy, but I’m planning to buy in two years so I feel safer now.
If you have a spanish passport it will not affect you if this becomes a law. Which is not clear considering Sanchez do not have a majority in the parlament. Probably it will not be passed by the parlament.
Airbnb and booking take bookings for both legal and illegal properties. They have no care whatsoever for the distinction. The illegal rentals are often illicitly obtained by false renters who turn the flat in to holiday rentals the next day. Added to this allowing 32 day to 11 month rentals means short term real-time increases in rent no locals can afford. This measure is like a sticky tape over the problem and also like closing the door after the horse has bolted
Spanish houses for Spanish residents, nothing wrong with that. If the U.K. did that instead of dedicating part of its housing stock to foreign investors and speculators maybe housing in the U.K. would be a bit cheaper
What if you put a deposit for pre-construction now, but you get the legal ownership only after this potential law comes into effect, would you be paying the tax with the new rate?
The tax on New Builds is IVA and is set centrally so it is possible that it could be raised from Madrid. It’s a good question. My instinct says that yes, at least on payments after the date of the tax change if IVA was paid in stage payments. There is no real substance to the proposals yet so nobody can tell. If you have bought or are planning to buy then I would advise speaking to your lawyer to see if there is anything you can do to protect against it. If I find out anything in more general terms I will update.
Tourists dont buy houses .Everytime I go on holiday I stay in a hotel or guest house I dont buy a property there ...lol This will have zero effect on Tourist numbers and do nothing really to lower house prices for locals
@@ianbarr5110 the irony is that the huge investors who are largely responsible for the inflation of prices in hotspots like Barcelona (Blackstone for example) would not be taxed any differently, as im quite sure they would use instruments such as Spanish Companies structures and offshore trusts to circumvent the tax. This will hit individual purchasers who, in my experience and contrary to Sanchez’s assertion, do not buy for investment but for lifestyle. But we will have to wait to see what the full proposal is when it gets published (whenever that will be).
This law is designed to put the brakes on foreign ownership and spiralling home affordability who would oppose it congress? Apparently this already law in Denmark and Canada well good for them I hope Spain joins them.
Brits buy a lot of slow to sell properties in sleepy inland towns and villages, providing inward investment, work for builders and tradesmen, and support for local businesses and services. These are not bought as investments as Sánchez suggests, but as 180 day per year habitation, often for retired people (who are not taking jobs away from Spanish citizens, but providing opportunities). If this tax is applied to such properties, it will excacerbate rural decline. Let's hope it is applied judiciously, and not as a blanket. Discouraging non-EU purchasers won't actually make a huge difference anyway...
@@2kool4myskool yes but it’s not necessary, and it won’t do what they think! You can buy a place inland for a few thousands euros ! They are there in the thousands. They need bringing up to date with renovation, yet you find very few for sale that have gone through that process! when they have the difference is remarkable as you would expect! So much of Spain is stuck! take a look at town houses for sale inland, we are in Andalucia. I you are not already knowledgeable, it’s going back in time, even if lived in they are full of large dark Spanish furniture, antiques probably. Spanish tiles everywhere floors walls etc etc, Yes they are beautiful when done with thought of todays designs, but many are very very old they do not match up any colour and all designs and colours in one property. if that’s what you are looking for fine! You will find them going for a song. it’s pretty clear that today’s young Spanish people have now moved on! make it easy for them to buy and renovate! Instead of blaming others.
@ I agree with you outside of tourism hotspots such as the Balearic and Canary Islands the tax should be indexed so that inland properties are exempt, perhaps 25 percent on the Costa’s ,perhaps 50 percent in the big cities Madrid, Barcelona and the islands full 100 percent. The islands are already saturated with constant airline and hotel pressures, i mean where do you stop, do you just let everyone in when there’s no water or infrastructure to support increased populations the local folk are understandably upset.
@@2kool4myskool this is utter nonsense! The ex pats and second home owners often buy in tourist areas, as said before not all do, but there are thousands and thousands of affordable homes many empty, inland! There is no crisis! It’s another political ploy much like over tourism, you will see what it will do, it will come back to bite them!
You are failing to see that the inkiokupacion is the real reason behind the housing shortage which the current parties are promoting . Landlords are not incentivised to rent their properties.
Won’t happen . Sanchez is finished and doesn’t have a majority . Most buyers are American or from morroco in 2024 so they will just rent , pushing up rentals . Brit’s are small fish in buying compared to other non eu .
the spanish have a backwards view on this topic. rather than increase earnings and improve its economy the espanoles would rather keep wages below the rest of europe but make housing cheaper. helps the poor today, but without growth in earnings and property values spain will not thrive.
I was in process of buying vila . I am now pulling out of this purchase as I don’t want to own a property with such uncertainty on its resale value . This property now has a high value and unlikely to help the local market . It will no doubt be bought by a German , French or Dutch national. How is helping the local market ? However this move would alienate UK , US buyers .
It wont. The focus is on apartments in city centres being grabbed up for AirBnbs, huge American investment funds buying up swathes of Madrid and also on affordable housing being purchased by non EU citizens from places like Morocco. The areas that were built for residential tourism haven’t been properly considered. The general industry consensus is that the new measure (if applied) would have no effect on prices. Demand is on the rise from Northern EU countries and with only about 2% of sales going to non-eu buyers the lost demand will be easily replaced. Obviously the risk needs to be assessed on a case by case basis though.
Spot on. My friend has just paused on a property purchase near Alicante due to wanting to consider whether to proceed. Same day, a Dutch couple have jumped on the sale and it is gone.
How about the other way around? How well can a Spaniard buy a property in your home country and become a residence there? Is it as easy as it is for foreigners right now to move in to Spain? ;)
@@mrt1878 The Netherlands is part of the EU, just like Spain. I mean, it's like saying its unfair that somebody from Florida can move to New York but I can't as somebody who doesn't live in the USA.
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Great to see a balanced and sensible explanation, I have been really frustrated with all the inflamatory headlines, even seeing property companies posting on social media to "buy quickly to avoid this tax!"... I live in Andalucia and resident so doesn't affect me, but this will never happen, that said, something HAS to happen or Spain faces a property bubble, and bubbles only end up one way!
@@nicbeese1 Never say never, especially in Spain.
It will only apply if the property is not your residence. If you buy a property purely for rental purposes then the tax will apply, and why not.
"large American investment funds have been aquiring VAST amounts of commercial and residential real estate" < He means Vanguard and Blackrock
Thank you for this informed video, I've been asking vendors selling properties and not really getting an informed answer. I appreciate informed videos like this.
Amazing. I think this is one Spain-related YT video where I've found the comments far more insightful than the video itself (and the video is very good), especially the comments from Brits currently living in Spain. Thanks.
@@CaldonianDude reductions are frequent in all priced property! That does not happen in a crisis!
Brexiters.😂
Excellent and balanced readout. This feels like a headline grabbing political announcement to 'make the point' and tap into the growing concern around the housing shortage in Spain. I agree with your view that if elements of these proposals survive the legislative processes, they will target the big cities where well educated younger Spaniards want to see genuine opportunities for them to climb the housing ladder. And I for one totally understand this. Change is needed. Thanks for the vid. I've subscribed.
We should do the same for any non-Brit……… It would help keep our ridiculous house prices down for British citizens.
I totally agree…I have been saying this for years. London is a foreign tax haven and money laundering center.
correct
@cp4512 I disagree, Germany, Poland and France etc don't do this, so we should only implement it on the Spanish. Of course, the EU would have a fit and insist it's either implemented on all of them or none of them. In which case, sorry to our Dutch and Portuguese friends, but Brussels insists (of course it, a really clever government would implement it to appease the EU, but hold the money aside, and return it to the buyers when they sell up. But only the original amount.)
@YesYes-xb6he yes, poor Spaniards that can't afford to buy property in Spain won't be able to buy summer residences in the UK, that ought to teach them a lesson😂
@ The Spanish don't want to be in your country so you'll be counting them on one hand!
100% agreed.
A government should always be there for the own people *first.*
tell starmer that
Excellent presentation providing unbiased information, and thankfully no clickbait headlines claiming this proposal is anti-Brit.
I have subscribed to your channel because I like your information based approach to this issue.
Much appreciated!
Remember all those poor people in Spain who had to demolish their beautiful houses due to corrupt politicians who had handed out Mickey Mouse authorisations defrauding the owners ?
Given the vast numbers of EU buyers in Spain- particularly from germany, denmark, holland and belgium historically, and now imcreasingly from eastern europe, i’m struggling to understand how slapping 100% tax on non EU buyers is going to help the domestic housing situation. A friend of mine was considering buying in spain a few years ago and we were struck by the number of urbanisations that were empty because they were ‘bank’ properties- development failed by bankruptcy. Surely making these available at reasonable cost to spanish citizens would be more helpful than blocking a small number of non EU buyers.
@@lulabellegnostic8402 oh EU nationals are next don't worry, we have already sent proposals to the UE to limit RE buys to "no residentes " this year may happen
The approach is multi-pronged incl utilization of bank held properties.
Non EU, eg. US, institutional investors, like property funds, buying in Spain are the targets of the “100% tax”.
Thank you for this. Very detailed and pragmatic review unlike what has beed reported in a shock and awe manner in the uk.
it should be done to in Devon and Cornwall. because it put the locals priced out owing to inflationary house with these holiday homes
Thank you for this clear and concise explanation of the Foreign Buyers´ Tax. Recently , there was an article in the Daily Fail on this topic and all sorts of misinformation was swirling around in the Comments Section. Thanks to people like yourself, the information is now crystal clear.
@@joesoy9185 thank you. It can be very frustrating. Unfortunately when there is little information availability people try to fill in the gaps with guesses and the guesses spread faster than the facts! Please keep an eye my channel for updates on this, I will never be the first to break a story but I will take the time to check the details at source and give them consideration before speaking.
Thank you for this information and explanation
No problem. I will add more as it is established.
Great explanation, will sleep better tonight. Cheers!
It makes my laugh when they blame the tourists for the high rental prices! They have been doing that here in Portugal for years. It's not the tourists who raise the prices, it's the greedy local owners, they see the tourists and raise the prices no matter what!
Demand increases price. The increase in demand comes from tourism and digital nomads.
So it is, actually, the tourists who are the problem
Interesting proposal. Here in Åland/Finland can real estate buy only residents (passport does not matter), other can’t buy even with 1000% tax. We spend 4 winter months on Tenerife, if this proposal will go trough, meaning rent will probably raise a lot.
Finísh people will be able to buy a property even if the law is approved. They are EU citizens.
Just pulled out of a property and business investment in Cadiz on the strength off this Spanish Gov 😢
One down, some more to go!😂
Thank you for this as I am starting the process of applying for my NLV, renting initially and buying, so knowing this potentially won't effect me is great news.
Thank you
Yes. If/when it becomes law Sanchez specifically said “non resident non eu citizens”, not “non resident and non EU”.
Bring it on in the UK.
It would certainly make property more affordable.
I would imagine that 99.9% of UK owned AirBnB properties in Spain are undeclared to either the Spanish or the British governments.
@@nigelwatson2750 out of the entire 2023 house bought only 5% National were Brit purchases
@ Brits have been hamstrung by Brexit...before that many, if not most brits bought properties in Spain because it has a superior climate, plus its a short plane ride to be in the sun......
@@nigelwatson2750 u would be completely wrong in that
@ Sure. those are the problem, people buying houses here, but not living here. It's a cancer. Brits who lives here are doing fine.
AirBandB must be made illegal
Currently in Vera playa and the place is deserted with old and new builds all empty.
What a horrible place. Worst beach I've been to, ever.
Just ban Air BnB job done.
I think housing affordability (rental dominoed to home sale increases) when Air B&B became a thing around the world. The whole world was similarly effected before even Covid.
Ban or heavily Tax/restrict AirB&B and housing could normalize.
ties in well with agenda 30, no travel.,
It’s already going to be ilegal in Barcelona city by 2028.
Great balanced explanation, I am currently in negotiations on a country property in Inland Andalucia, Iznajar/Loja area. My concern is future tax implications that could be enforced as it will be partly a 2nd family home and holiday let.
It only a proposal not law yet or possibly never !
Yes, but it's all about setting the tone. If not now then perhaps some day...
If he doesn't do it, I will help vote him out.
2nd (holiday) homes are a luxury when we all have a housing price crisis. Our priority should be getting working young people onto the property ladder.
It's a disgrace that a working couple can't dream of buying a house where they are from. The fault lies with the Banks for allowing people to borrow more than 2-3x salary (as was the case in the 1970s-1980s). That immediately pushed house prices up to match and did NOTHING to help anyone.
Then the Buy-to-Let mortgages allowed landlords to buy everything up.
Then we have places like Cornwall where tourist villages are simply Airbnb ghost towns in Winter.
Or the government could just make new construction possible and within reach. Why should I not have nice stuff because you weren't an early bird?
Excellent video. Explains it perfectly. Thanks
Thanks for such a sensible video. I pretty much agree with all that you said. Young people and affordable homes is such a problem in many countries but it's exacerbated in Spain by very poor wages. It's not exactly true that there aren't affordable properties. I've seen thousands of properties for sale but they're not where young people want to live and many of them require expensive levels of restoration. Another infuriating practice in Spain is that property sellers get it in their heads that a property is worth some artificially high price and wont sell it for less even if it stays on the market for years or decades.
Let's face it, it is a populist move by Sanchez and PSOE. How does a 100% property tax for non EU residents make it easier for younger Spaniards to afford these properties? Same thing is happening in my country of Wales. Welsh government is taxing second home (holiday home) owners to such an extent that they sell up. Only problem is the locals can't afford to buy the empty properties. If they could they would have done so in the first place; which brings me back to Spain and the capitalist concept of housing property. It's the Spanish home owners that have been getting rich by putting the selling prices up and up. People buy houses as investments and the prices are expected to increase. It's the biggest investment most people make and it's a disaster if the prices do anything but increase. Economies go crazy when house prices stall.
The only way people on average earnings can do to afford property is to save but that's hard to do with the chicken shit wages in Spain. The other way is reckless mortgage lending but we did that in the noughties until the explosion in 2008. Nothing's changed. Rural Spain is emptying. I've seen dead and dying villages and small towns with my own eyes. Plenty of property nobody wants. Same thing has happened in Japan. Cities are swelling and prices go up with the law of supply and demand. The government will have to build or subsidise those that build. Identical problem in the U.K but the U.K government's building targets are absurd. We barely have any qualified bricklayers. Nope; It's just far easier for PSOE to tax foreigners. Can't touch those EU foreigners though because that's against the rules and would make you look like an unpleasant country. The slime of modern politics is pushing this agenda and has nothing to do with solving the underlying issues of Spain and home ownership.
Very well put, and sadly, 100% accurate
Agree with you 100%.
100% tax is on the purchase. For example, if a flat costs €100,000, non-EU citizens will pay €100,000 in taxes, a total of €200,000.
To bear in mind:
- It is applied in areas with high tension or high demand.
- New constructions are designed for the rich or for high salaries, as entrepreneurs want high returns. New developments start at €250,000 (small flats).
- Many affordable flats are bought by people with a lot of money or investment funds, to then resell at a higher price.
- There are neighbourhoods where more non-EU citizens live than locals. Mostly in rich areas.
- Those who buy the most in Spain are Latin Americans (rich), Russians and Chinese (flats and commercial premises). In some cases, they use the Golden Visa to bring immigrants legally.
You are wrong, the problem is not airbnb flats, those are only 2% of the total amount of houses in Spain. The problem is the government hasn’t built any public housing in more than 15 years leaving the offer in the country left to none
and nor do they want to spend out on them either. its like punching yourself in the nose then blaming brits 😂
Finally a goverment that does something for the benefit of the majority. I am surprised! I was not used to decisions for the majority anymore!
Spainish authorities is definitely correct on cracking down.
We wouldnt want such a beautiful country and culture to become like dog eat dog, private equity, Britain
Spain gets about 85 million visitors per year. It's the second most visited country in Europe after France. If the 100% tax is applied to non EU nationals like the Brits I don't see it causing huge problems for the property market in Spain. The EU, with a population heading for half a billion people and its wealthy northern Europeans will easily take up the slack. What it might do is stem the tide of retired people selling up lock stock and barrel in the UK and moving to Spain hoping that their state pension will stretch a bit further there. These type of arrivals don't bring much economic activity to the local economy with them.
You mean apart from them spending money in shops, cafes, hairdressers, bars, markets, insurance, transport and leisure.
@@zipperzoey2041 That’s fine, we’ll just keep spending our money in countries like Portugal who appreciate we are helping their economy.
@YesYes-xb6he More Europeans will arrive if all the Brits/Russians go home. Places will be much friendlier and less intimidating
If a part of demand for properties is taken away the value of property prices will fall. Those already with mortgaged properties will find themselves in negative equity. Yes, younger generations will be able to buy properties as house prices fall, but with the push against tourism industries, Spain's hospitality industry will decline. Transportation, food and drink establishments (bars, restaurants, takeaways etc.), hotels, tourist attractions all rely on visitors to pay employees wages. Those jobs that remain will be in high demand forcing wages downwards. Foreign investment will not want to invest into a country hostile to foreigners, particularly if specialists brought in from outside of Europe find themselves being heavily taxed. Other countries might also respond to these measures by treating Spanish citizens in a similar way. I agree with the sentiment, but the government must find another way to resolve the situation. The proposed measures will do more harm than good.
Well I have investment property in Spain and I'm selling up. If Spain does not want foreign investment nor UK tourists then no problem. I'm off to Florida. Nice video thanks
Wasn’t Brexit about keeping foreigners out? Now that you realise it works both ways you’re unhappy 🤣🤣🤣
No problem for tourists to come so far. Spain's population more than doubles because of tourists. Canary Islands get 50% more tourists than Hawaii. It's a huge problem.
@@S_Dunne Brexit wasn’t about keeping people out 🤣
Good riddance
@@jesusgallardo8685now you will have even less money 😂🤡
The proposal that you mentioned from PP IS WHAT HAS to be applied. The same I have seen in Germany, if politicians want to solve the housing problem they have enough land available and they must ease up on regulations. I talked with a large builder in Germany and he said that the regulations for building for the government is exasperating compared to when he builds for private property.
The housing issue in the West is an equality related problem not a foreign sales issue. Banks are the root of the cause and action needs taking against banks, but politicians are culturally weak...
All of Europe has the same problem
This is also happening in Malta. Anyone can buy property at market prices, increasing prices. It is a positive thing for someone like myself who owns property, but it is getting out of hand.
I am aware of that, but Ireland was once under UK control.
No it doesn't. Southern European properties are being purchased by Northern Europeans for holiday homes. Walk through Barcelona any winters day and listen out for the different languages spoken.
Should do something similar in Norfolk. Since covid all those previously living inside the M25 have moved up the A11 now 'working from home' and scooped up all the housing sending prices beyond the range of locals.
Havent read the post, but think a 100% INCREASE in tax is the more likely scenario. SURELY. House purchase tax currently about 12-15000 euros. Lived in Spain 23yrs.
It is worth mentioning that in 2024, only 27,000 properties were sold to non-Resident non-EU buyers. Whilst this has made a lot of headlines, in reality this isn't the problem and won't solve the housing shortage. The real problem is the lopsided Spanish tenancy laws that protects the tenant whilst hammering the owner. The time and costs of eviction for a tenant with arrears is the reason many owners have turned away from long term rental and switched to vacation rental. Unless the law becomes more balanced, and gives owners the ability to evict a non-paying tenant, owners will keep their properties off the market.
Nah. Huge numbers of apartments owned by non-EU investment funds who suck the life out of local housing markets and then set the rates for sale and rental. Happening all over the world and must be stopped. Also big numbers of apartments owned by non-EU, non-residents who will have to sell. This will kill the stupid increases in house prices and increase supply virtually overnight. Low fruit for the Spanish government. Investors just have to suck it up. The balance is screwed.
@bogbay what I am saying is based on our exposure to this sector. My wife runs a rental agency in Costa del Sol, so she is very aware of what is going on the market.
I have a number of clients in the real estate sector, as my company manages their websites. This gives us a valuable insight to the entire sales process, customer profile, and pricing.
@ I'm sure it does but it hasn't given you an accurate insight into why Spain is doing this. It has nothing to do with someone who is late with their rent. Only a landlord or an agent could come up with that.
As an owner of a property in Spain, renting long term is very very tricky. It is easier to get the holiday lets instead of a local long term Spaniard.
@ Be honest Stehen. You don't want long term. You want your weeks in Spain,so holiday let works for you.
Excellent video. Spain needs to remember that tourism has kept the country afloat for 50 years, mainly from the British. We have spent billions over there as a nation and continue to do so today. It’s unbelievable that people can just walk into our country and have things for free, yet Spain don’t want decent people with money who are willing to spend it in Spain.
Decent people? English decent people? ha, ha, ha...
@@jesusgallardo8685yes we do exist 😳
@@tobyjug71 The OP certainly isn't. He thinks Spaniards owe him access to purchase their land/houses at prices locals cannot afford.
Typical British exceptionalism
@@jesusgallardo8685Yeah we are !!!! But not the fake imported ones
Sánchez is the worst president we've had in Spain. Spanish citizens like me are tired of him. Immigration keeps increasing and we're exhausted from taxes
Try living in the UK it's even worst.
Taxes have been the same. Cheaper taxes then other European countries in the north.
@ Well, I have to pay €550 per month as a social security contribution to work as a self-employed person. Then, for income tax (IRPF), we are paying 40% or more. And then, when you buy something, for example, at the supermarket, you pay more with VAT and other charges, adding up to over 50%. There's only one word for that, and it's called theft. Then they spend that money and give it as aid to those who do nothing in this country, like all the immigrants arriving in boats.
@@Toni-nv2omsame in Britain. It’s the bloody left wing governments.
So who would they sell to
Many Scandinavians and Dutch are buying.
Europeans 😂
Have you heard of Europe? It is a pretty big place
@@nicbeese1 Europeans don't have the credit access or the housing price difference that the brits do . .
They should do that in every country, a house is to live in not to make money from it. Well done to the Spanish
It's a proposal not a cert. They could tackle the villa and Air BnB issues but as usual want the tourism. Perhaps they could stop illegal immigration and actually build some properties. Ex pats fleeing the useless UK shouldn't be discriminated against.
@sduk451 Brexit cause all of that, what Spanish want to do is stop Chinese and Russia money and all laundry money they send into Spain to buy property, unfortunately because UK isn't part of EU anymore it's considered a 3rd country. Something has to be done not just in Spain but UK too. propertys have became a investment and that's wrong.
Good, long time coming
EU, UK = WEF, You will own nothing and be unhappy, Stakeholder capaitalism. Wake up people..
EU buyers will benefit from lower prices . Thank you Brexit
Excellent explanation, clear and concise. They could whack Air B&B, but want the tourism. Perhaps should should get off their a** and build some properties.
We have just returned from a viewing trip with the aim of purchasing in La Zenia this year but after hearing about these tax plans I feel we can’t trust the Spanish government to not introduce some kind of tax penalty on us in the future. As we wanted to spend up to six months abroad we are now going to look at Portugal or Italy.
Stay in the UK, we don't want more immigrants
Been visiting Spain 2 or 3 times a year for over 30 years, Torrevieja is one place I would never return to, it's like a cheap Brit ghetto. We only went because friends had property in La Zenia.
It's a good idea and at least a start, but it needs to be coupled with banning ownership of multiple properties by individuals (unless rented out long-term), banning short-term lets (domestic properties being used as hotels) and making it harder to borrow money. All of these measures would start to bring down the overinflated property prices. I would expect to see a lot more of these types of measures across Europe over the coming years as we transition from those who benefitted from the the ponzi of the past 40 years (boomers + gen x) to those voters coming through who did not. We need to recognise that shelter should not be treated as a speculative financial instrument. I wouldn't be surprised if voters demand price drops in coming years, which will mean a stark reversal of the Tory/New Labour years where they appealed to the house price inflation brigade. Interesting times...
Spain is dead for brits looking to buy in spain now
if you think Span is out of reach for Brits... imagine for us locals haha.
@Nano3D-f5g i am a local... quesada
If you want to live in Spain you still can, rent first and once you get your residence you can buy like a local.
Well we shouldn’t have left the EU then should we? Mad on so many levels.
Good call and welcomed!
Wasn't allowed to buy a house in Sweden when I lived there, th UK was still part of the EU at the time.
Good video - how long does it take to get residency and therefore avoid this (if it ever happens)?
Cstan.... Months to get your residency.. Paperwork paperwork and more paperwork... Tony cuenca
Perhaps the govt, should get some social housing built,
Eso no existe en España. Aquí solo se construye para vender a extranjeros especuladores.
They will be transferring 30000 properties held by Sarab (a state controlled bank that holds distressed assets from the crash) to public ownership for use as social housing.
@@Spainunfiltered Ya…deberían hacer esto, deberían hacer lo otro…que tal por vuestros países? Bien?
Need grants to help with down payments. Then, you can lock people into properties. Average workers here will never be able to buy.
Sanchez's proposal, 100% non-EU taxes, is one of twelve (1/12). Its objective is to reduce the price of housing (buying and renting), support social housing and make it more sustainable (consuming less energy).
I watch Spanish property sales on here most days. and they seem to be almost giving them a way!
Good unbiased video. Wasn’t quite clear on was is this for new buyer only not existing?
Post Covid work from home across eu is what is crippling places like bcn…. If u lived in Eg Amsterdam u can now do that job from Spain and why not right?? Well that just brings the price of rent up as they don’t care due to the price of living being so cheaper and earning a foreign wage…. Other issue is bcn is enclosed and is hard to build in… there are places to rent and buy cheap they are just not in the centre. A place like BCN that was a shit hole pre Olympics and has massively boomed in the last 15 years is just late to the party of places like London Paris etc
As you rightly point out, "foreigners" come to work remotely in Spain, it is cheaper than in their country of origin and with their original salary (no salary from Spain). They don't mind paying a little more for rent, since it is still cheaper in their country of origin. In the end, the owner of the house will end up paying the same rent from their country of origin as in Spain, even so for the foreigner it is still cheap, due to the costs of living (food, water, etc.).
But for a local or Spanish person, with a salary from Spain, the price of rent becomes unaffordable.
@ correct that’s why this narrative against foreigners is wrong, the issue comes from the top. Either for many people they have to accept they can’t live in the most desirable part of the city (Like they do in eg Paris and London) which btw is 100% better than it was 15 years ago or the government need to intervene… my guess is that people will largely have to accept it… it’s totally unrealistic to expect a 30% decrease in rental property against modern inflation….. most people though don’t take that in to consideration
Place in the sun won't be doing any shows in Spain then🤔☀️
Don't worry, the sun will still shine in Spain as it does in many other countries.
Like the UK , Goverment is simply moving blame to the easiest target . I used to own property in Spain and loved it but Brexit and uncertainty simply made the situation untenable . Additionally Spain like most of Europe and the UK have sleep walked into an illegal migrant catastrophe and progressively in the area I lived thus level was highly visible . So , we simply live in Scotland , built a custom camper van and spend three months in Europe in the Winter and The rest in beautiful Scotland , 🏴without mass immigration as we simply don’t have a big country and what there is is mountainous …. Also this Scottish government as far as possible does look after its population .
Don’t blame the Spanish government one bit we should do the same here in Blighty oooh wait a minute we give houses away and let them live in 5 star hotels for free until they find one for them!Fantastic information buddy thank you for your content.
Absolute nonsense.
@
You are part of the problems
You're typical British right wing attitude is why we want the British to leave. Hypocrites as they want to go to Spain but always express their disapproval at others being in Britain, including the Spanish.
Can you clarify what does non EU , Non resident implies ? Does it mean that if you are Non EU and not resident this rule will apply or does it mean that if you are either of the rule will apply ?
@@dieselmonster it’s Non-Eu or Non Resident. If you are non EU you could become resident (while renting) and the purchase as a Resident. If you are an EU citizen then you avoid the tax anyway regardless of whether you are resident.
Sorry but to clarify, and I'd be really grateful for a response. I reside in the UK, but through an additional Irish passport have been able to retain EU citizenship. Therefore if the tax is enforced, as an EU citizen, despite being from the UK, is it your understanding I could avoid it, should I decide to purchase a Spanish property in the future? Thanks
@ that is my understanding (I suspect that the tax would be levied on all foreign purchases if it weren’t for free movement laws) It’s important to remember that, at the moment, everything is based on a few lines from a policy speech, however it seemed clear that the tax would not apply to EU Citizens. You have Irish citizenship regardless of where you reside.
@Spainunfiltered Much appreciated. I've joined your website, and I will be purchasing your book. Thanks for your professional video and all the videos you've posted about Spain. You've clearly got an immense amount of knowledge and experience in this area. I would recommend anyone here, look at the great website. All the best
Spain can decide to do this and Brits can decide not to go to Spain at all.
Not a Brit proposal, applies to all non EU, but be free to feel victimised after voting to become non EU
@colmquinn7860 well aware it applies to all non EU.
Don't feel victimised, just stating factual freedom of choice.
Brexit
100% tax on non EU Property purchases is an excellent Idea. It will help slow down price increases. Other EU states should consider doing the same. It should be extended to all non EU citizens. Young EU citizens are being denied the opportunity to buy or rent a home and start a family. Non EU investors and retirees are part of the problem.
It could have a positive effect in some areas, especially popular cities like Barcelona but there are other areas where the economy is built around residential tourism where the effect could be negative. The likelihood is that in those areas the lost demand will quickly be replaced by growing demand from EU buyers however, if not then effect would be detrimental. If the local economy is built around tourism then removing the tourists might free up houses for people to live in but who would want to live there when there is no work?
@ There is a lot of pent up demand from EU boomer retires looking to move south including the remote areas. If Non EU demand is removed it will ease prices generally., not stop increases. Also as Northern EU retirees move south this provides some improvements for Northern states - Germany, Netherlands, Poland, Sweden, Finland, Ireland, etc which are also seeing huge property price inflation. This will help young northern EU kids get a home and start a family. EU economy benefits all round.
@ that does make sense, only the tax targets second homes/ property bought for rental. Retirees that meet the non-lucrative visa threshold could still retire to Spain and rent while they obtain residency and find a property. Many already do. Im sure many will continue to do so. Most of these people go to areas that are not experiencing the problems that Sanchez is targeting.
The property stock in question is potential homes that are either left empty most of the year or rented out in short lets. I absolutely understand and agree that in highly populated areas with diverse economies (eg Barcelona) this 100% tax could be effective, although the big players from the US and China buying blocks, not individual apartments, would continue to speculatively invest through companies and trusts and so I expect that the actual impact would be minimal. I think the proposed crackdown on illegal Airbnb’s and tax incentives to reduce rents would be far more effective in tackling those problems.
Where areas have been developed purely on the back of residential tourism, where lots of properties are second homes and most are empty for most of the year, the lost demand of non EU buyers for holiday homes will likely be met anyway from within the EU, it might have a small impact on rising house prices but I doubt it would bring them down. If the demand wasn’t met, the homes wouldn’t find their way to become general housing stock as there are limited career opportunities in these areas. Even more importantly, were these properties all to become permanently occupied the infrastructure would collapse. Hospitals and police etc are largely based on resident numbers not property count.
It seems more likely to be a political decision rather than a workable economic policy.
Actually makes sense and we should do the same for those purchasing property who are non uk residents who do not plan to live in the building for at least 9 months of each year.
I live here, and most of the buyers are Dutch, Belgians, and Germans. Nothing will affect them.
I live in Spain, we currently have our home on the market and are constantly looking for another home nearer to amenities! From what I have clearly seen there are thousands and thousands of places on the market, and I am talking low cost! Empty, abandoned, derelict, if Spain need to do anything for their own citizens it’s help them with the costs of renovations! Unless you have really spent time looking at what’s out there you wont have a clue! If you talk inland Andalucia for example, I am not being insulting in any way when I say this, but most properties at the low end of the market are stuck in a time warp. There is absolutely no shortage of houses! It’s just ridiculous to say there is! It’s the will to take an old property at a low price and get stuck in! If I was not 75 I would do it!
why is this a proposal,your post means there are no non eu people ruining spains housing issues,how many uk xpats thats just a start
Indeed. I live here to as an expat. Many Spanish families owns several houses, and even when not counting the many houses only used for leisure as second or third home, 16% of Spanish houses are still completely unused.
A HUGE reason for this is that Spain still hasn't sorted out the paperwork and ownership of millions of houses since the Franco regime. Trying to buy houses here in Spain often amounts to finding the many many people that are connected to the property through inheritance, often spread over many families. It's not uncommon that you have to find 15-20 people or more, that all has to agree on a price and wanting to sell.
@@danielmccracken9133 What???
@ yes but politically the people do not want to hear that. to put something on others is far more helpful. I was writing about the tax on things but lost my thread somewhere? But we have just had to have a new boiler the cost looks to be around 8000 euros all in, can we afford it? No ! But 21% of that is tax! The economy here is black, cash in hand cash in hand, That is another thing that needs sorting out. A huge rate of tax forces many to go cash in hand. They need to bring down the rate and stop so much black economy. we know it will always go on, but here it’s cash cash cash. Even at offices where they are collecting monies, example registering our car, that was already Spanish as we had it in canaries for 7 years. I had to pay someone to take me in our car to Motril to pay I forget how much? but cash please? It’s clear to me that the Spanish people do not abide by laws, and are not called out for it. Much of the taxes comes from the likes of me! We came by ferry from Fuerteventura to Cadiz and had to pay thousands in tax on our belongings, that we had paid tax on in UK, then Tax on in Canaries, then tax on in Spain. all the same old stuff! My advice to any one wishing to come here to live don’t bring anything ! Some of our stuff. Is years old, no longer worth the tax we had to pay on it! That’s not counting the thousands we paid in transport. We could buy a second house! lol 😂. Wise after the event you could say!
Spot on dude ! I used to have a property in Andalusia loved it, but Brexit as you have now found is The Terminator for UK home ownership in The EU. Sorry that age is leading to barriers to exit from the locality … as the quality of life surpasses UK significantly. However for a few tenacious people from Britain I agree with technology and access to water older properties are the way ahead in certain parts of Spain ….. but finally with global warming much of Spain is uninhabitable during the summer months and will …. Inevitably progressively become more so ….. and therefore the access to water older properties/ bore holes will become scarce …. So all in all , permanent residency is not a realistic option . We now have a self build luxury van that we use to winter in Spain / Portugal 🇵🇹 and summer , spring here in Scotland….🏴 . And like lemmings before us lots of others are doing the same …. And what follows is more taxation and restrictions on these vans ….. it’s simply economics if envy .
Makes sense... discourage tourism in an economy that relies on tourism. It will go as well as expected 🤣
Before people come for Sanchez, please know what he's NOT saying..
He isn't saying not to become a resident first and then purchase your beloved property second to bypass the 100% tax.
He isn't saying not to sell to other people who hold resident permits to bypass the 100% tax.
He won't be saying that he's saying all of this to placate a portion of the population that is disgruntled by the perceived take over by non-EU folks in the country.
In fact, I think it's a smart move. It calms them down on a sector that isn't causing them grief and Spain gets to protect a large portion of what's keeping their economy afloat, they can focus on building low-income housing, and it's a win-win for everyone.
Because trust me, being a resident gives you more benefits than not PLUS you can live anywhere else in Europe.
So Sanchez is doing all of us non-EU homeowners who are residents a HUGE favor.
Don't come for that man.
Build 6 million modular homes Then wait for the new 2008 crash
In Mallorca, I haven't met a local who doesn't own at least 2 properties, usually more.
Then you haven't met many locals. Granted, people who have lived in the island since at least the 70s do often own more than one property (which tend to go to children as they can't afford to rent on the open market) but large swathes of the working class and people who have arrived recently (last 10 years) are stuck paying 800-1000 euros a month for a two bedroom flat, if they are lucky enough to get that. Palma is even higher. The amount of people stuck at home or having to rent a room in a shared flat well into their 40s is getting larger and larger. As 5 year rental contracts are starting to expire, people are seeing rents double in many cases.
The proposed 100% tax will never happen. However, it may well increase from the current 10%.
Very few Brits are actually buying property in Spain since the Brexit, I have a holiday home in Spain on a site of 168 properties, only 2 properties are now owned by Brits, in the past 2 years several properties have come up for sale and they have all been sold to so called EU citizens, so it's not the British that's to blame, its Freedom of movement that permits uncontrollable movement of EU citezens... so Taxing Brits at 💯 % more isn't going to improve the situation.
@@georgewaters7667 totally agree but it does not suit does it?
💯 % 🎉🎉🎉 love it ❤
what about those within the eu buying properties, Germany, Netherlands france etc
The 100% tax doesn’t appear to be directed at EU citizens or residents. I don’t think community law would allow it. The changes to rental laws will be universal.
@@SpainunfilteredEU citizens are not affected by this potential law.
eventually, when foreigners realise that they are only welcome in Spain to pay taxes etc.the problem will be solved itself, but the clever Spanish government will then realise where the money comes from and pays the bureaucracy in Spain!
Deflection tactics from a Government in trouble...
Superb. Thank you.
It won’t be 100pc rate taxation , but it could go up as much as 20 or 30 pc….it’ll slow down the real estate market sales and probably driving prices down. If it benefits the Spaniards people the it should go through.
It will make house prices cheaper, but a lot of estate agents and related jobs may be lost. It will probably have a hit on the economy which would also affect the job market.
Nice one mate.
Thank you 🙏
i have a small apartment in spain i have owned for over twenty years we are surrounded by hundreds of other apartments mostly owned by spanish people who have let them out for years mostly for cash only we have always followed all the rules including paying proper buildings insurance most of our spanish nieghbours have a really careless attitude towards these rules these are they people need to control?
@@barryyeatman5341 to be fair, sanchez crackdown on illegal rentals (that he announced at the same time as the tax) is directed at all nationalities. We stopped renting a property when the licences came in and yet it’s really irritating to see people continue illegally.
@@SpainunfilteredSobre todo cuando son extranjeros especuladores. Compran para alquilar directamente a más turistas y ni viven en España. No respetan las leyes, las normas, solo quieren hacer dinero. Además son agresivos y groseros
contra los españoles. Ningún país necesita gentuza así.
I live in uk. I have a Spanish father and grandparents. I can get a Spanish passport. Will I still have this tax if I want to buy a Spanish property?
Of course not
Lucky you, you can get an EU passport that allows you the freedom to live and work anywhere across the EU. As an EU citizen you wouldn't pay this tax. I am very very jealous, I'm stuck on this rapidly sinking island :(
@ I thought not, but my other half was putting doubt in my mind!!
@@marklewis7732 I’ve appreciated my Spanish bloodline so much! But I doubt this will take place… sounds crazy, but I’m planning to buy in two years so I feel safer now.
If you have a spanish passport it will not affect you if this becomes a law. Which is not clear considering Sanchez do not have a majority in the parlament. Probably it will not be passed by the parlament.
Airbnb and booking take bookings for both legal and illegal properties. They have no care whatsoever for the distinction. The illegal rentals are often illicitly obtained by false renters who turn the flat in to holiday rentals the next day. Added to this allowing 32 day to 11 month rentals means short term real-time increases in rent no locals can afford. This measure is like a sticky tape over the problem and also like closing the door after the horse has bolted
Spanish houses for Spanish residents, nothing wrong with that. If the U.K. did that instead of dedicating part of its housing stock to foreign investors and speculators maybe housing in the U.K. would be a bit cheaper
In the UK white people are the lowest of the low houses are for immigrants only
It has to pass through congress , not that easy, and will take a while .
not going to spain any more lets see what how the market goes
Perfectly
If there’s a housing shortage how come my house out there hasn’t gone up
What if you put a deposit for pre-construction now, but you get the legal ownership only after this potential law comes into effect, would you be paying the tax with the new rate?
The tax on New Builds is IVA and is set centrally so it is possible that it could be raised from Madrid. It’s a good question. My instinct says that yes, at least on payments after the date of the tax change if IVA was paid in stage payments. There is no real substance to the proposals yet so nobody can tell. If you have bought or are planning to buy then I would advise speaking to your lawyer to see if there is anything you can do to protect against it. If I find out anything in more general terms I will update.
If the normal rate is 10 to 12% then why not just double that to say 20% for non residents and non citizens.
The uk needs to do the same
Nooo, Spaniards are going to stop buying summer homes in the UK, how will they and you survive that😂
@themechanictangerine
I believe it was meant to mean for the new people arriving and arrived
@ this might help young ones get on the property ladder
Tourists dont buy houses .Everytime I go on holiday I stay in a hotel or guest house I dont buy a property there ...lol
This will have zero effect on Tourist numbers and do nothing really to lower house prices for locals
Never been to Spain then?
Sounds like a good idea
I thought the 100 percent was to prevent Bulk Buying from non Spanish investors??
@@ianbarr5110 the irony is that the huge investors who are largely responsible for the inflation of prices in hotspots like Barcelona (Blackstone for example) would not be taxed any differently, as im quite sure they would use instruments such as Spanish Companies structures and offshore trusts to circumvent the tax. This will hit individual purchasers who, in my experience and contrary to Sanchez’s assertion, do not buy for investment but for lifestyle.
But we will have to wait to see what the full proposal is when it gets published (whenever that will be).
This law is designed to put the brakes on foreign ownership and spiralling home affordability who would oppose it congress? Apparently this already law in Denmark and Canada well good for them I hope Spain joins them.
Brits buy a lot of slow to sell properties in sleepy inland towns and villages, providing inward investment, work for builders and tradesmen, and support for local businesses and services. These are not bought as investments as Sánchez suggests, but as 180 day per year habitation, often for retired people (who are not taking jobs away from Spanish citizens, but providing opportunities). If this tax is applied to such properties, it will excacerbate rural decline. Let's hope it is applied judiciously, and not as a blanket. Discouraging non-EU purchasers won't actually make a huge difference anyway...
@@2kool4myskool yes but it’s not necessary, and it won’t do what they think! You can buy a place inland for a few thousands euros ! They are there in the thousands. They need bringing up to date with renovation, yet you find very few for sale that have gone through that process! when they have the difference is remarkable as you would expect! So much of Spain is stuck! take a look at town houses for sale inland, we are in Andalucia. I you are not already knowledgeable, it’s going back in time, even if lived in they are full of large dark Spanish furniture, antiques probably. Spanish tiles everywhere floors walls etc etc, Yes they are beautiful when done with thought of todays designs, but many are very very old they do not match up any colour and all designs and colours in one property. if that’s what you are looking for fine! You will find them going for a song. it’s pretty clear that today’s young Spanish people have now moved on!
make it easy for them to buy and renovate! Instead of blaming others.
@ I agree with you outside of tourism hotspots such as the Balearic and Canary Islands the tax should be indexed so that inland properties are exempt, perhaps 25 percent on the Costa’s ,perhaps 50 percent in the big cities Madrid, Barcelona and the islands full 100 percent. The islands are already saturated with constant airline and hotel pressures, i mean where do you stop, do you just let everyone in when there’s no water or infrastructure to support increased populations the local folk are understandably upset.
Communist?
@@2kool4myskool this is utter nonsense! The ex pats and second home owners often buy in tourist areas, as said before not all do, but there are thousands and thousands of affordable homes many empty, inland! There is no crisis! It’s another political ploy much like over tourism, you will see what it will do, it will come back to bite them!
You are failing to see that the inkiokupacion is the real reason behind the housing shortage which the current parties are promoting . Landlords are not incentivised to rent their properties.
Won’t happen . Sanchez is finished and doesn’t have a majority . Most buyers are American or from morroco in 2024 so they will just rent , pushing up rentals . Brit’s are small fish in buying compared to other non eu .
Not true.
It’s got to do with Spain not uk it’s not all about you lot
@@JonM-ts7osI’m not British and it doesn’t concern Brit’s , only couple of thousand buy a year anyway .
Totally untrue
Good stuff. Cheers
the spanish have a backwards view on this topic. rather than increase earnings and improve its economy the espanoles would rather keep wages below the rest of europe but make housing cheaper. helps the poor today, but without growth in earnings and property values spain will not thrive.
I was in process of buying vila . I am now pulling out of this purchase as I don’t want to own a property with such uncertainty on its resale value . This property now has a high value and unlikely to help the local market . It will no doubt be bought by a German , French or Dutch national. How is helping the local market ? However this move would alienate UK , US buyers .
There is a lot more property buying happening from investment money from Asia, so bit could be targeting this.
It wont. The focus is on apartments in city centres being grabbed up for AirBnbs, huge American investment funds buying up swathes of Madrid and also on affordable housing being purchased by non EU citizens from places like Morocco.
The areas that were built for residential tourism haven’t been properly considered.
The general industry consensus is that the new measure (if applied) would have no effect on prices. Demand is on the rise from Northern EU countries and with only about 2% of sales going to non-eu buyers the lost demand will be easily replaced. Obviously the risk needs to be assessed on a case by case basis though.
Spot on. My friend has just paused on a property purchase near Alicante due to wanting to consider whether to proceed. Same day, a Dutch couple have jumped on the sale and it is gone.
How about the other way around? How well can a Spaniard buy a property in your home country and become a residence there? Is it as easy as it is for foreigners right now to move in to Spain? ;)
@@mrt1878 The Netherlands is part of the EU, just like Spain. I mean, it's like saying its unfair that somebody from Florida can move to New York but I can't as somebody who doesn't live in the USA.