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Interesting bit of News

Posted: Tue Jan 14, 2025 11:07am
53 replies11 members subscribed
Airtaine

Airtaine

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Spain proposes 100% tax on homes bought by non-EU residents.

Spain has announced plans to impose a tax of up to 100 percent on real estate bought by non-residents from countries outside the EU, such as the UK, in an aim to tackle the country’s housing crisis.

The measure was one of a dozen unveiled on Monday by the country’s prime minister, Pedro Sánchez, as the government seeks to quell mounting anger over housing costs that have soared far beyond the reach of many in Spain.

So buy now before the rush.

Just another government avoiding the shortage of housing by looking for an easy way out and in the process shooting themselves in the foot

Darrin69

Posted: Tue Jan 14, 2025 8:05pm

Darrin69

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Posted: Tue Jan 14, 2025 8:05pm

Well that will be me selling up.its just not viable anymore with the 90 day rule. .a make sense though..there doing it also in Wales. Many are selling up the second home but the Welsh still carnt afford them..

ChelseaRick

Posted: Tue Jan 14, 2025 10:49pm

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Posted: Tue Jan 14, 2025 10:49pm

As a potential buyer, the lack of detail on the proposal is worrying, and will probably stop me purchasing in the near future.  Who will want to commit to a second home with this "threat" hanging over their head?  Indeed, if the market is led by supply and demand and present home owners decide to sell up, then the market will drop.  On the plus side, housing stock will be released .... assuming the Spanish can afford them.  Then wait for them to compalin that UK investment is not happening.   

Be careful what you wish for.

Airtaine

Posted: Wed Jan 15, 2025 8:19am

Airtaine

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Posted: Wed Jan 15, 2025 8:19am

Darrin69 wrote on Tue Jan 14, 2025 8:05pm:

Well that will be me selling up.its just not viable anymore with the 90 day rule. .a make sense though..there doing it also in Wales. Many are selling up the second home but the Welsh still carnt afford them..

Well-read this and see if you want to change your mind as to quote from the article says he may have a problem getting the law passed or is just full of it-

Real estate agents contacted by Bulletin online today have slammed the new law as being "silly" and also indicated that Sanchez would have a major problem getting the new law approved by parliament. "He promises plenty but delivers little," said one

Seems that he wants to target Airbnb rentals, Sanchez has said-

“Our obligation is to prioritize use of homes over tourist use, and we will make a change so that tourist flats are taxed as a business which means they will have to pay like hotels,” he stated.

Sanchez continued: “We are also going to limit the purchase of homes by non-EU non-resident foreigners who buy about 27,000 houses annually in Spain, mainly for speculation.”

Sanchez continued: 

“We are also going to limit the purchase of homes by non-EU non-resident foreigners who buy about 27,000 houses annually in Spain, mainly for speculation.”

The government will raise to 100% the tax levy to be paid by non-EU residents who do not live in Spain but buy a home.

That will follow April’s ending of the Golden Visa- the residence permits for foreigners who buy houses in Spain for more than €500,000.

To fight fraud, the government is also planning to tighten the regulation of seasonal rentals.

A fund will be created for Spain’s 17 regions plus local councils to apply for money to increase inspections of tourist properties to ensure they are licensed.

His government wants to increase affordable housing in Spain but his ideas are up against some opposition

"The problem is not that people want to live in Spain, the problem is that there is a lack of housing," said Luis de la Matta, director of communications of the Partido Popular (PP).



Alicia 11

Posted: Wed Jan 15, 2025 9:26am

Alicia 11

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Posted: Wed Jan 15, 2025 9:26am

perhaps if the Government would pursue the various skeleton blocks all over the country of untouched sites and force the builders to build them as affordable housing it may help.  Of course that is if they are in areas where people need such housing and not in Holiday areas where the only buyers are the ones he is trying to deter.  How will they look at Capital Gains taxes if they double the cost of a property.  It is only directed at the British so the Europeans will buy up all the second homes and rent them out instead. 

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ChelseaRick

Posted: Wed Jan 15, 2025 10:06am

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Posted: Wed Jan 15, 2025 10:06am

Alicia 11 wrote on Wed Jan 15, 2025 9:26am:

perhaps if the Government would pursue the various skeleton blocks all over the country of untouched sites and force the builders to build them as affordable housing it may help.  Of course that is if they are in areas where people need such housing and not in Holiday areas where the only bu...

...yers are the ones he is trying to deter.  How will they look at Capital Gains taxes if they double the cost of a property.  It is only directed at the British so the Europeans will buy up all the second homes and rent them out instead. 

"It is only directed at the British so the Europeans will buy up all the second homes and rent them out instead."

Good point, I, and I would guess, he, hadn't thought or considered this possible consequence.  Still feels like a sword of damocles over British buyers, existing or potential 

AndrewJ

Posted: Wed Jan 15, 2025 10:49am

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Posted: Wed Jan 15, 2025 10:49am

This is a cynical, populist and counterproductive move from Sánchez. He's trying to distract people from the fact that he has been pivotal in worsening Spain's housing crisis.

I'm not convinced this will go through parliament, and if it does I'd be surprised if it's adopted in Andalusia since it would destroy the regional economy.

However, it will definitely cause a lot of uncertainty and nervousness about buying in Spain, hence it will affect the housing market and ultimately the economies of the Costas favoured by Brits.

A truly stupid political stunt.

ChelseaRick

Posted: Wed Jan 15, 2025 10:58am

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Posted: Wed Jan 15, 2025 10:58am

AndrewJ wrote on Wed Jan 15, 2025 10:49am:

This is a cynical, populist and counterproductive move from Sánchez. He's trying to distract people from the fact that he has been pivotal in worsening Spain's housing crisis.

I'm not convinced this will go through parliament, and if it does I'd be surprised if it's adopted in Andalusia since it would destroy the regional economy....

...

However, it will definitely cause a lot of uncertainty and nervousness about buying in Spain, hence it will affect the housing market and ultimately the economies of the Costas favoured by Brits.

A truly stupid political stunt.

"However, it will definitely cause a lot of uncertainty and nervousness about buying in Spain, hence it will affect the housing market and ultimately the economies of the Costas favoured by Brits."

Well said, being as I am now one uncertain and nervous Brit.

DarioMartin

Posted: Wed Jan 15, 2025 11:31am

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Posted: Wed Jan 15, 2025 11:31am

Being a resident, and a renter, I'd love to buy my own property to live in.

But in the areas we would like to live, prices are spiralling.  Of course estate agents will slam the governments proposal - lower property prices means less commission for them.  Their ire is fueled by greed.

In the urbanazacion I live in right now, property prices are insane .... there are around 350 units.  For 9 months of the year 10 of those units are occupied by permanent residents.  10.  out of 350.  thats 340 units standing empty for around 9 months of the year.

Were property a bit cheaper, we'd love to buy .... so sorry property owners but I am in favour of an artifically inflated property market having a "correction" and screw the whiny estate agents.

Invariably when news of changes in the property market arises, there are many comments from overseas part-time residents of those nationalities affected saying "well I'm going to sell" as if that is a threat.  Where there is a seller, there is a buyer, which generates income for estate agents, lawyers and all other people that become involved - plumbers, electricians etc to fix any problems prior to sale for example.

And if the buyer is going to reside permanently in that purchased dwelling, then that's another name on the Padron, more money to the ayuntamiento for facilities, more income to surrounding shops, supermarkets etc etc.

the issue of dwellings being used solely for holiday lets in an area that is short of housing does need to be addressed.  Blaming "the government" for not building more housing is, well, silly - its property developers and builders that should be focusing on buying land and building houses and estate agents should stop trying to inflate prices so as to drive their commission up ... unless you are suggesting a "social housing" program by the government? which would of course have to be paid for .... by taxes.  e.g. by raising taxes on non-resident property, say ....

Everyone wants the problem of no housing fixed - until it affects their hip pocket directly then all of a sudden the people trying to address it are in the wrong.

ChelseaRick

Posted: Wed Jan 15, 2025 11:57am

Posts: 22

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Posted: Wed Jan 15, 2025 11:57am

"Everyone wants the problem of no housing fixed - until it affects their hip pocket directly then all of a sudden the people trying to address it are in the wrong."

Whilst I can sympathise with your situation, the announcement lacks sufficient detail.  "Up to 100%" of what exctly?  What is the proposed scale?  Will other taxes still be applicable?  Perhaps completing, as mentioned above, the half built ones, would help, but all this is meaningless if the infrastructure is not there to support them e.g roads, schools, hospitals etc.  

If taxation is to be the funding source for a build programme, then it is right to direct it where the asset is being used for income generation, not at those that simpy wish to reside in peace, either permanenetly or at the incredibly generous 90 days in 180 (sic), contributing to the local economy as present.

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