Spain is taking significant steps to address its housing crisis, with Prime Minister Pedro Sánchez unveiling a plan that includes imposing up to a 100% tax on properties purchased by non-European Union residents. The aim of these measures is to combat housing affordability issues and soaring rents in the country, with a focus on enhancing housing availability, implementing better regulations, and providing increased assistance.
Spain, like many other developed nations, is grappling with a housing affordability crisis, particularly in major cities such as Barcelona and Madrid where rents have surged beyond the reach of many, especially the younger population. The escalating housing prices, particularly in urban and coastal areas, have exacerbated the situation.
The surge in rental prices has been fueled by short-term rental contracts primarily catering to tourists. Spain, a top tourist destination, received over 88.5 million visitors in 2024, making tourism a vital economic driver. However, the downsides of mass tourism, including rising costs, the proliferation of short-term rentals through platforms like Airbnb, and strains on resources in regions like the Canary and Balearic Islands, have led to tensions between tourists and residents.
Last year, protests erupted across Spain over concerns about tourism growth and high rents, prompting Barcelona's authorities to pledge the complete elimination of short-term tourist rentals in the near future. The Spanish government is now aiming to take concrete actions to address these issues, as emphasized by Housing Minister Isabel Rodríguez.
In a bid to curb property speculation by non-EU residents, Spain plans to introduce a substantial tax hike of up to 100% on properties purchased by this demographic. Sánchez highlighted that non-EU residents bought 27,000 properties in Spain in 2023 primarily for investment purposes rather than residency.
Additionally, the government intends to construct more public housing and allocate significant residential land to a newly established public housing agency. Proposed measures also include increased taxes on holiday rentals, incentives and protections for landlords offering affordable housing, and legislative amendments to expedite construction processes and expand land availability for private development.
The housing crisis holds political significance in Spain, with the cost of living driving discontent among voters, a trend observed in various affluent nations. For Sánchez, a prominent Socialist leader in Europe, resolving the housing crunch is crucial for maintaining his left-wing minority coalition following his reelection in 2023. Moreover, the Spanish Constitution guarantees all citizens the right to a 'decent and adequate' home, underscoring the government's obligation to facilitate the realization of this fundamental right.
