Brexit has been blamed for ruining the plans of Britons looking to move to Spain, following an announcement by the country’s prime minister that he is looking to ban property purchases by those from outside the European Union.
The move by Pedro Sanchez is an attempt to curb rising housing prices.
“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,” he said.
He added that non-EU residents represent about 23,000 of almost 700,000 homes bought and sold every year in Spain. Of all foreigners buying property in the country, British buyers lead the way with almost 10 per cent of transactions.
A group that advocates for Britons in Spain believes the UK’s withdrawal from the European Union is the root cause of distress for those who had been hoping to move to sunnier shores.
“Many British nationals on lower incomes, who had hopes of retirement on the Costas, have already had their dreams shattered [by Brexit],” said Sue Wilson, the head of Bremain in Spain, a group with 6,000 members, told The Times.
“These new measures – assuming they are passed by parliament – will only add to the barriers we face in Europe as non-EU citizens.”
Spain has seen a surge in overtourism protests in some areas over the past year, many focusing on the impact holiday rental properties have on the lack of housing in their area.
A mounting housing crisis for permanent Spanish residents has left some feeling they have been locked out of the housing market exacerbated by short-term holiday rentals.
Tens of thousands in Barcelona protested in November over the increasing prices of renting an apartment in an area that has become such a popular tourist destination.
At the protest, people held up signs in Spanish reading: “Fewer apartments for investing and more homes for living" and “The people without homes uphold their rights.”
Earlier this year, Barcelona’s town hall pledged to eliminate the city’s 10,000 so-called “tourist apartments” by not renewing any licences after they expire in 2028.
On 13 January, Mr Sanchez unveiled a proposal that would see property taxes for non-EU citizens in Spain be equivalent to 100 per cent of the value of a home.
Mr Sanchez said: “The tax rate that non-Europeans who do not reside in our country must pay when buying a home in Spain will be increased to 100 per cent, prioritising that the available homes are for residents.”
One in five homes sold in Spain is bought by foreigners, with many of them non-residents.
Currently, the tax rate for non-residents of the EU is around 24 per cent of the price of the house, depending on location.
A source close to Mr Sanchez played down the suggestion of a ban to Reuters, saying the plan remained to discourage acquisitions through increased tax rates.
Simon Calder, travel correspondent of The Independent, said: “Spain has some serious stresses in its property market, but to appear to blame British buyers for the number of Airbnbs in Barcelona looks wide of the mark.
“The prime minister is relying on the time-worn strategy of blaming greedy foreigners for domestic problems. But by choosing to leave the European Union, the UK opted to be out in the cold.”
“The British demand to be limited to a maximum of 90 days’ stay during the winter means there are far fewer buyers, and an exodus of long-stay property owners could lead to a slump,” he adds.
“Many other southern European nations recognise the value of long-stay British visitors, and I foresee an arms race as countries compete for the winter-sun pound.”
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