Sanchez Proposes Ban and 100% Tax on Property Purchases by Non-EU Foreigners in Spain
By Okafor Joseph Afam
January 21, 2025
Spanish Prime Minister Pedro Sanchez has proposed bold measures to curb rising housing costs, including a ban on non-EU foreigners—such as Nigerians not residing in Spain—from purchasing properties in the country.
During a rally in Plasencia on Sunday, Sanchez stated, “We will propose to ban these non-EU foreigners who are not residents, and their relatives, from buying houses in our country since they only do so to speculate.”
The proposal, outlined on 13 January, includes a tax of up to 100% on property acquisitions by non-EU citizens who do not reside in Spain. According to Reuters, this measure aims to reduce speculative demand and increase housing availability for local residents.
A source close to Sanchez clarified that the ban is not yet finalized. Instead, the current focus is on deterring purchases through higher taxation.
Paloma Relinque, CBRE’s executive corporate director for Spain, expressed concern, stating, “All factors related to regulatory and juridical changes are discouraging investors.”
Spain’s housing market has faced significant strain due to shortages, gentrification, and tourist-driven demand. The Central Bank has projected a deficit of 500,000 houses this year, adding urgency to the government’s efforts to address the crisis.
The proposal has sparked debates about its potential impact on foreign investment and whether it could provide a long-term solution to Spain’s housing challenges.
