DHAKA: Spain’s Prime Minister Pedro Sánchez has proposed bold measures to address the country’s housing crisis. Among them is a plan to impose up to a 100% tax on homes purchased by non-EU citizens who are not residents.

The proposal aims to reduce rising rents and housing prices, which have become unaffordable for many, especially young people in cities like Madrid and Barcelona. Sánchez emphasized the need for “more housing, better regulation, and greater aid.”

Spain’s housing crisis is fueled by skyrocketing rents, rising property prices, and the dominance of short-term tourist rentals. The country welcomed over 88 million tourists in 2024, contributing to increased housing demand and higher costs.

In response, the government plans to build more public housing, allocate large tracts of land for residential development, and impose higher taxes on holiday rentals. Landlords offering affordable housing could receive tax breaks and legal protections.

The proposed tax on foreign homebuyers targets non-EU investors, who often purchase second homes. Real estate agents report that this group includes post-Brexit British buyers and clients from wealthy nations like Saudi Arabia.

Housing Minister Isabel Rodríguez stressed the urgency of the issue, saying citizens expect action to curb unaffordable rents and home prices.

Despite these ambitious plans, it is unclear whether Sánchez’s minority coalition will secure enough support in parliament to pass the measures.

Sánchez, a leading Socialist in Europe, faces growing pressure to address housing concerns. Spain’s Constitution guarantees citizens the right to a “decent and adequate” home, a commitment the government aims to uphold. (France24)