OUR VIEW: Spain's Proposed 100% Tax on Homes Bought by Non-EU Buyers | 15 Jan 2025

[@lousey1969]

What I don't grasp is that he says he wants to do this to help the local population with their housing issues but the non-EU buyers make up a small percentage of the overall properties bought by non-Spanish citizens so surely there would be far more impact if the higher taxes were to apply to all buyers outside of Spain??

[@davidandersson2014]

Of course, it would have had a much greater impact, but it is not permitted under applicable EU regulations to discriminate against residents of other EU countries in that way. Therefore, the measures can only be directed at non-EU citizens.

[@steveward4432]

There are foreign entities that buy up hundreds of properties

[@bipl8989]

​​@@steveward4432You got it. It's not to prevent individuals from buying properties at all. It's to bust the Blackwater private money massive buyups. They will have to pay these taxes. It's a bit early to even be talking about this. Nobody knows, especially these guys, what they are talking about yet. It's at least a year away. But there is no obligation whatsoever to treat non EU residents like EU residents.

[@CloudNineSpain]

Interesting debate isn´t it. There must be smarter ways of addressing this issue.

[@PrettyGreenMonk]

Tax the foreigners a higher rate tax on income from airbnb/rentals that way it targets the problem… some people buy a holiday home and use it 90 days a year and don’t lease it out … in fact the 90 ruling is probably why brits now lease there homes more because theyre not allowed to stay longer after brexshit

[@DotLittle-k2x]

Thanks chaps. Will keep watching for updates... By the way, I am ACTUALLY Auntie Dot, who is intending to retire to Spain! I am hoping once one obtains Residency (whilst renting as a retiree on an NLV) that any taxation intended to discourage absent investors wouldn't apply. I can only hope. I'm looking forward to spending my pension in Spain and contributing to the Spanish economy. Keep up the good work.

[@CloudNineSpain]

Auntie Dot! Great to meet you!! Yes, we assume that anyone with residency won´t be affected. We will keep you posted. Best regards, Sean

[@juansantana8448]

sure Sanche is serious, or at least he should be. Foreigners should not be allowed to buy just any properties they want anywhere in Spain, and as many properties as they want (Mutual Funds and other private investors have been creating havoc in the local housing environment, so out they go!)

[@francisco7661]

Well a restriction on only owning 1 would be ok it's the companies that buy up blocks. But also it's not the reason you don't have a house it's a wage lack of jobs and training Besides it's the autonomous regions that decide on ITP

[@ph5056]

All the people around me renting air BnB 's in Andalusia are Spanish

[@PortugalCarp]

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!

[@headhunter2513]

100% agree! There is no system here to accurately conduct proper comparative market prices. You can have 2 identical properties here and the pricing will be differnt...no logic at all. Then you also have high agency fees @5% which gets added on top of the inflated property value----again pushing prices up. The whole real estate sector needs a total revamp and boot out the cowboys and get real exam qualified professional in, like the US and Oz

[@bipl8989]

It's not specifically to prevent individuals from buying properties at all, although they may get caught up. It's to bust the Blackwater private money massive buyups. They will have to pay these taxes. It's a bit early to even be talking about this. Nobody knows, especially these guys, what they are talking about yet. It's at least a year away. But there is no obligation whatsoever to treat non EU residents like EU residents. And it is EU directives to eliminate golden visas.

[@marcusjenkins]

Since this only affects non EU citizens, there will be PLENTY of buyers from inside EU. Germans, Poles and Scandinavians, for example, are buying a lot of homes in Spain. So the Spanish economy will NOT collapse. Tourism will NOT collapse.

[@maxflight777]

It’s good for Portugal 🇵🇹! Sanchez damages Spain’s prosperity… he’s a complete clown.

[@miguelmelchior986]

You sound so buthurt. Portugal is subservient, but will have to wake up too, it has more than half a million brazilians working in tourism and services cause nationals leave the country where they cant even buy a house. Greed is very strong, but something has to give..

[@yanassi]

If tourism brings 130b € into the spanish economy, how does sanchez NOT realize that money can be used to build affordable residences for spanish citizens?

[@MCA391]

Tourism is still going to come regardless, this is a law made strictly to Foreign buyers who buy properties without living in them, especulating and escalating the prices, outpricing the locals. There are winners and losers in both sides.

[@Ktheodoss]

How many homes are actually purchased by non EU residents? I cant believe the number is so high that it influences the overall housing price of a whole nation. I have seen many videos lamenting the fact that so many towns in Spain are turning into ghost towns. It feels like a measure that isn’t appropriate across the board.

[@CloudNineSpain]

It´s a very small proportion of total transactions

[@sarahcronshaw3088]

Thank you for the update

[@MrCanalon]

Tourists doesnt buy houses, they go to hotels!

[@ianburton9223]

Your take on this issue is far more rational than several other channels. Thank you for this reasoned presentation.

[@CloudNineSpain]

Thanks for the feedback Ian

[@jasonaris5316]

Unless this is applied to all overseas buyers it will not work (and they can’t apply this to EU citizens due to the freedom of movement and capital pillars) Most people I’ve seen buying in recent years are from the Nordic’s not non EU

[@patrickbailey1249]

So do you think it is a 100% increase on Modelo 210 no resident?

[@CloudNineSpain]

Nobody is sure Patrick. We are expecting some clarification from the government in the coming days, but it seems that they have thrown a grenade and disappeared into the trenches for now!

[@WanderingFriar]

Great advice. That someone 'in power' could say this in public is very worrying. Is this the sentiment of most in Spain? We dont know. A certain Mr. Farage started just this way about the UK's membership of the EU. It was quiet and funny in the beginning but look where the UK is now. Poorer, Isolated and a laughing stock but too proud to admit the self-harm Brexit has done.

[@Merc-Rover]

Sanchez rarely gets what he wants so I wouldn't be too worried

[@CloudNineSpain]

True

[@SPe1520]

I don’t get it. First you wanna leave European Union and later you’re angry cos some benefits don’t include you ? 😅 It’s not working one way tho. Apart of that I don’t really agree with Sanchez anyways, because the extra taxes should be applied to all non-spanish residents and firlsty the okupas law should change.

[@CloudNineSpain]

Fair points

[@condadodealhamahomes]

When congress approves the 100% tax, whatoever that means. After that, foreigners can still buy with a Spanish SL´s, there are no tax changes to be expected apart from small annual adjustments which apply to everyone who owns an SL, NON-EU and EU people and offcourse you have the yearly running cost to cover.

[@CloudNineSpain]

This may be with work-around

[@jefflloyd8277]

So if the tax on a property is 100 k tax we’re does the money go on another property

[@remarkable99]

Just to point out that the worst case scenario is 100% of the value of the property in tax, *every* *year*. So if you buy a property for one million Euros, the tax due every year would be a further one million Euros. And as for regions refusing to implement such a tax, we all know what happened last time that happened with wealth taxes in Spain - the government introduced a new Solidarity Tax that everyone has to pay. My view is that Spain clearly doesn't want wealthy people from outside the country visiting and spending their money. That's cool. There are plenty of countries that aren't quite so stupid as to try to reduce the value of their most important "export". My money would go to those instead of Spain.

[@bipl8989]

@@remarkable99 I think your worst case scenario is unreasonable. It's a one-time tax as I understand.

[@Kinai89]

This will also increase solidarity tax and wealth tax, this is so insane!!!

[@CloudNineSpain]

Insane indeed!

[@alialwazzan8227]

This is really insane to allow non EU residents to purchase properties and after that telling them we will tax you 100% it doesn’t make any sense if it happens

[@CloudNineSpain]

No sense at all

[@manuelmaura4453]

People and governments all over the world are panicking about the real estate problem. The main source of the issue is the change of outlook of hones and being traded as commodities and means of passive income. What needs to be done to curb this in my opinion is prevent large corporations from purchasing homes and also prevent the use of homes as rentals. Currently banks and different firms own properties the same way they would hold on to gold bars in a vault, remove that and you will be releasing a ton of homes in to the market. Also get rid of the idea of individuals purchasing homes as a means to make passive income off of tenants, this passive income "trick" has become parasitic and is ruining people's chances to purchase homes. My last thought is I think there needs to be a global devaluation of all properties in the world, the rise in property value is affecting not only local homebuyers but will eventually affect even the speculatora/landlords since all homes will not longer be able to be insured against the increasing irratic extreme weather. The bubble will burst eventually, it is just a matter of when.

[@CloudNineSpain]

VERY interesting outlook Manuel. Thanks for sharing.

[@KNic-is6zh]

We should do this in the UK to foreign buyers who buy purely as an Air B&B investment.

[@CloudNineSpain]

Thanks for watching and for your feedback.

[@amardeepsidhu2871]

Well will be good for poor people of Spain not the rich. Maybe give brake to those foreigners decided to live full time in Spain collect income and property taxes.

[@headhunter2513]

What I have learnt from this video is - Absolutely nothing! and that is not targeted at the OP There is no definitive answer to all this, and as stated when he asked 5 different lawyers he got 5 varying answers (no surprise there then ) lol. Also the assumption that it's non EU Auntie Dot "coming over here and taking all our properties" is as nonsense. There are plenty of EU nationalities that do EXACTLY the same. They buy a property and use it perhaps only once a year, then lock and go. The whole premise from the GOv stating it is to "address" the local housing/rental situation is also a huge RED HERRING...nothing to do with it, I htink the GOV would prefer to see "speculation" being kept "in-house" and not external funds. Plenty of Spanish hedge funds that buy up swathes of property

[@CloudNineSpain]

Thanks for watching and for your feedback.

[@ps-dn7ce]

Oh well, Brexit just keeps on giving (a bit of British perspective :-) ) For Cloud Nine: hire Polish-speaking agents and focus attention on those who can and are still buying. Btw, great video as always. Thanks!

[@CloudNineSpain]

I know, I´m scared of mentioning the B word on social channels, but it really has caused so many unnecessary problems. Just my opinion of course! 😜

[@JayStillYung]

Did they even repeal the solidaridad de las grandes fortunas? Lol that Wealth tax will stay forever

[@CloudNineSpain]

Nope that’s still going!

[@grahamblake7198]

If this crazy idea goes ahead then the property crash that will follow will make Spains last property seem like a party.

[@CloudNineSpain]

It won´t happen

[@nigelcard9927]

This tax will do no favours to spain other country’s will double or treble taxes on there property’s to anyone wanting to buy property in the uk and also uk may go back maximum of four yours so some MPs have said in england to day .

[@felix8523]

I don't think this measure will lower housing prices, What Sánchez wants is to increase the number of 'residents' (tax payers) to avoid paying the 100% tax. By the way, this measure will affect the vulture funds or they do not matter to Sánchez.

[@maxflight777]

Sanchez can’t even do this .. particularly the Islands, they have autonomy

[@CloudNineSpain]

Yes, the autonomous regions could simply slash transfer tax in retaliation, especially somewhere like Andalucia, which is controlled by the opposition party.

[@zipperzoey2041]

Sounds a little like wishful thinking on the part of the hosts with a little bit of British exceptionalism thrown in and one of the unforeseen consequences of Brexit! Spain gets about 85 million visitors a year. It's the second most visited country in Europe after France. If the 100% property tax is applied to non EU nationals like the Brits I don't see it causing major problems for the property market or the Spanish economy. The population of the EU is heading towards half a billion people, it's one of the most economically advanced regions in the world and EU citizens will easily take up any slack in the market. What it might do is stem the flow of British pensioners who sell up lock stock and barrel in the UK and move to Spain in the hope that their pension will stretch a little further there because of the cheaper cost of living. These type of arrivals don't bring much economic activity because they don't have the income and will become a burden on the Spanish health service as they get older. Also many don't learn to speak the native language which is a bar to integration and often live in clusters in urbanizations full of people similar to themselves.

[@CloudNineSpain]

Mmmm, certainly in the coastal areas, we have a 2nd home property market, with a very different demographic to downtown Valencia or Sevilla. What a lot of people are forgetting is that overseas investment in these areas accounts for a valuable portion of the market. De-stabilising that portion then impacts the economy and the country in general. I think the vision of the little old pensioners from the UK upping sticks for a better life is a little simplistic. The market is far more diverse that this....as I´m sure you know 😜

[@oscarsantas6528]

Pero a parte de esto se está haciendo un borrador para que los residentes en España tengan que presentar un exámen de idioma como pasa en Francia...por lo que estoy más que de acuerdo¡¡¡¡

[@yanassi]

Blatant ignorance! Why ignore the 130B € that tourist bring into the spanish economy? USE IT to build affordable apartment houses for locals. What is that money for, if not for the citizens?

[@Bustergonad9649]

All the entitled English commenting on this story. The Spanish don't need us more than we need them. Spain is a sovereign nation and can make its own tax laws. Imagine the uproar in gammon land if the Spanish were commenting on uk tax laws🤦‍♂️🤦‍♂️

[@CloudNineSpain]

Sorry, don´t agree. I´m a resident of Spain since 2001 and have a right to comment on what´s happening. You´re absolutely correct in that Spain can make its own tax laws, BUT what a lot of people are forgetting is that overseas investment in property accounts for a valuable portion of the market. De-stabilising that portion then impacts the economy and the country in general.

[@Bustergonad9649]

@CloudNineSpain it's still spains decision to make. Nothing to do with anyone else, particularly the British. Keep out if spainish affairs, they are a sovereign nation.

[@CloudNineSpain]

@@Bustergonad9649 I´m entitled to an opinion, as you are too. I believe I can have my say as a tax-paying resident of the country for the last 23 years. I may not be correct, but I firmly believe I have the right to an opinion.

[@MrPetervice]

Can an average Spaniard afford to purchase such expensive homes in our village most of the empty homes are owened by locals who have moved to the cities. Family homes they only visit on holidays many homes valued under €150k which is still affordable for many Spaniards and foreigner's but lack of work locally means no one wants to buy these properties anyway.

[@MrCanalon]

I live in Majorca and most of the properties are owned by foreigners, in certain areas business are from foreigners to foreigners costumers, often paying taxes on their countries of origin and behaving like complete and absolute 1d1iots. So you brought that onto yourselves, Spaniards are very happy this is happening

[@Oommaarr2890]

It is merely a political move knowing it would not happen!

[@GleeSmee]

There is too much support for socialism in Spain. It has become uninvestable.

[@francisco7661]

There are people who for work reasons cant just upsticks and move over and get a job. Its a bit of a what comes 1st the chicken or the egg As a non resident You cant be garrented a job but you may have more chance of buying a house to then enable you to transition over and obtian a job in the country or nodmadic job. My plan is to buy a farm to work agricultura but i am going to need a job to invest in the business on equipment and infasrture and what ever licenses are required there is no help for over 40s so id need to keep my job in the uk until things are established all using the help from native population tradesmen architectes etc

[@StuartSwindellC]

The comments by presenters on whether it is legal or not to tax differently Non-Eu compared EU persons. I would highlight UK have taxed EU nationals living and working in UK differently to UK residents with regards to NI contributions and there is no recourse as far as can be seen.

[@lil_icedcream]

It’s against eu law

[@zac7695]

Well, at least "this guy" as Cloud Nine calls the Spanish PM, is raising important issues about foreigners buying prime areas of Spain for profit. There are many new developments in and around Marbella where there are hardly any Spanish owners and they are empty most of the time. The new law, if goes anywhere, has certainly caused panic among the British real estate agents.

[@CloudNineSpain]

No problem whatsoever in him raising really important social issues, but to be so reckless in doing so is not professional....IMHO of course

[@miguelmelchior986]

@@CloudNineSpain Did anyone asked you? Abide or leave. :)

[@Theekylesmith178]

Wow I was going to move to Spain this year, I think I’ll pass. 😳

[@bipl8989]

If you move/buy as a Spanish resident, no problem. No tax.

[@CloudNineSpain]

That would be a shame. My advice is to let the dust settle on this. It could be next week´s chip wrapper!

[@miguelmelchior986]

Move to brighton.

[@CloudNineSpain]

@ Why Brighton? I´m intrigued.

[@johngamble7399]

sanchez is obviously on cloud nine

[@miguelmelchior986]

You sound buthurt mate

[@papapiers1588]

Not surprised it’s making waves. You guys will fold.. no question about it.

[@CloudNineSpain]

Bit harsh!

[@felipeschulz2485]

socialist brain: more tax = more better

[@bipl8989]

Absolutely.

[@miguelmelchior986]

Its more greed = more better. Right?

[@felipeschulz2485]

@ tell me where’s the greed, most people can’t make any decent money without being bullied by taxes anymore. To give someone 3k salary I have to fork 6.3k in expenses, who’s gready??? Yes, amazing idea, let’s tax more the foreigners, yet the issue remains, the population can’t make money at scale. That’s why there’s disparity, that’s why Americans make more money, it’s because of bad economic policies that Europe is broke… keep thinking left and keep being poor

[@David-n4v5h]

Sorry lads but absolute BS. Anytime govt gets into property the wheels totally come off.

[@purpleplexi]

If it wasn't for non Spanish residents in southern Spain the economy would virtually collapse. Not sure how that will help local residents.

[@Starfishalps]

It would be bad for that particular area, but the rest of Spain would be fine. Most of the economy is in Madrid, Barcelona and Valencia.

[@marclajeunesse3890]

It is very amusing reading the reactions to this video , as if we have a say 🤣 . I can guess the protests won't get any better, next summer should be interesting .

[@Starfishalps]

People that are rich enough to spend 4-8 weeks a year in Spain contribute more to the economy than people retired there. Fact. The rich Latinos in Madrid have made an enormous difference to the Spanish economy.

[@CloudNineSpain]

Good point.

[@MrCanalon]

Everybody=British and merucans