I didn't press the enter buttons and this didn't post earlier, Sorry.
Well, anyone seen the new proposals for buying property in Spain?
Prime Minister Sanchez has come up with a 12 point plan to make property readily available for Spanish citizens.
These proposals are.
- Transfer of 3,300 homes and two million square metres of residential land to the new public housing company.
- Providing the public housing company with a “legal mechanism to give it priority in the purchase of housing and land”
- Protection of state-subsidised housing “to ensure that all housing built” with public funds “maintains public ownership”.
- Launch of a Perte to “modernize and innovate in the construction sector.”
- Creation of a “system of public guarantees that protect both owners and tenants who participate in affordable rentals.”
- A programme to rehabilitate vacant housing units that will be rented out at affordable prices for at least five years.
- Propose to Congress the approval of a 100% tax exemption on personal income tax for those owners who rent out their property according to the reference index.
- A tax reform will also be proposed to Congress so that tourist apartments “are taxed as what they are, a business.”
- A fund for regional and municipal governments to strengthen the prosecution of fraud in seasonal rentals.
- Commitment to “change the tax benefits regime for REITs so that they only apply to the affordable rental regime.”
- Limitation on home purchases by non-resident non-EU foreigners, increasing the tax burden to 100% of the value of the property.
- New State Housing Plan 2026, with more aid programs and special attention to young people, the elderly, people with disabilities and those who live in degraded areas.
I draw your attention to proposal number 11 which is, would your believe, upping the tax for non EU citizens buying property in Spain to 100% of the value. So that looks like nobody will buy in Spain in future as, of course, when property is sold it cannot include the taxex.
If you want to sell an existing property, the buyer will have to pay double unless they are EU citizens.
Sanchez stated Spain is turning into two types of people "rich owners and poor tenants".
Obviously a lot to think about. For example, if you rent for a year as a resident in Spain, would you escape the tax if you then bought a property? Maybe you would have to wait 5 years until the residency is permanent or maybe you will have to pay it regardless as he was talking about Spanish "citizens" not "residents".
He also talked about foreigners buying property not to live in but for speculation. Would this mean the 100% tax proposal is just for second home owners who may or may not use it for rentals?
Full details are to be found in the Spanish press and El Diario has a good article including a link in that article to the new proposals.