Understanding Spain's Proposed 100% Property Tax for Non-EU Buyers

Why is Spain Proposing This Tax?

Spain aims to address its housing crisis by making homes more affordable for residents. In 2023, non-EU buyers purchased around 27,000 properties, often for investment purposes. This activity has driven up property prices, leaving many locals struggling to find affordable housing.

How Will This Affect British Buyers?

If the tax becomes law, British buyers may face significant challenges. For instance, a property priced at €200,000 would incur an additional €200,000 in tax, effectively doubling the cost. This could lead buyers to reconsider their options and explore other countries.

What Are the Alternatives?

With Spain's proposed tax, many buyers are looking at other destinations:

• France: Affordable properties in regions like the southwest and Var coast.
• Greece: Offers a golden visa programme starting at €250,000 with high rental demand.
• Portugal: Known for its friendly culture and reasonable property prices.

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