Spain appears set on making non-EU residents, such as Britons, pay for the country’s housing crisis.
The Socialist Parliamentary Group (PSOE) has introduced a bill aimed at promoting affordable rental housing. Among its key measures are raising VAT on tourist flats to 21% to reflect their economic activity and increasing taxes on REITs (real estate investment trusts) and vacant properties.
Housing and Urban Agenda Minister Isabel Rodríguez announced these details at a press conference, explaining that the fiscal package fulfils part of the government’s early-year commitments outlined by Prime Minister Pedro Sánchez in a set of 12 measures to improve housing accessibility, according to idealista.
Regarding the timing of the measures, the Minister of Housing stated that the PSOE plans to use the “first available opportunity” within the Congress of Deputies’ legislative agenda, aiming for the first half of June. This is not the time for half-measures or mere regulations; sometimes prohibition is necessary. This is not about superficial fixes – we need to act decisively,” Rodríguez emphasised.
The bill, which requires majority approval in the Lower House and subsequent amendments, introduces a new state tax aimed at discouraging property purchases by non-EU citizens and non-resident foreigners through the property transfer tax. This new tax will not be passed on to the autonomous communities to “avoid double taxation,” according to the PSOE.
It will apply to real estate purchases across Spain (excluding the Basque Country and Navarre), covering all properties except real estate security rights, but will only affect individuals and companies that are not residents within the European Union.
The proposal excludes business owners and professionals carrying out their activities, unless their activity is exempt from VAT, in which case, they would be liable for this new tax. One of the key measures in this bill to promote affordable housing rentals is the increase of VAT on tourist flats to 21%, ensuring they are taxed as a genuine economic activity.
Following a meeting with PSOE representatives, Housing Minister Isabel Rodríguez stressed that this initiative fulfils the entire package of measures announced by Prime Minister Pedro Sánchez last January. She urged parliamentary groups to support the bill, affirming that the Socialists “will actively work on these measures.” Rodríguez acknowledged that while her department has already introduced steps to encourage affordable housing, “the government’s efforts also require a solid legal framework.”
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I don't know what any of this has to do with either side of the political spectrum. Both sides struggle with anything resembling "solutions" simply because it's not really "fixable". It's the 21st century. Any attempt at returning to 1967 just won't work. They'll just have to find ways to deal with reality. And frankly, it has nothing to do with Brits either. But it makes for good clickbait. Poor abused Brits.
Time for Spain to take back control. Immigrants are making the life of citizens hello. You want your holiday, fine is you are a tourist. Stay in a hotel, then go home. Unregulated immigration from non eu countries (Britain included) is out of control.
oouoo oouooActually it was the PP that changed the law that led to hundreds of thousands (possibly millions) of Latin Americans moving to Spain. Conservatives blaming everyone else as usual
Morgan WilliamsGross immigration (total arrivals) during the past 5 years have been 4.5 million into Spain. A large share of new migrants are from Latin America (especially Venezuela and Colombia), North Africa (notably Morocco and algeria) etc 759,0000 illegal migrants claiming asylum on top of that. But blame the Brit and their holiday home Socialists will never learn
Sage AdviceWhen using GPT might be advisable to at least ask it not to respond using American spelling and grammar
We’re talking about two different tax changes here, right? 1. Transfer tax of an unspecified amount that Pedro Sanchez suggested at 100%, and 2. Increase of VAT to 21%
That’s gonna fix the housing crisis. Just exactly what are they gonna raise in funds. Very little of not very much perhaps. But a good dollop of blame the “ other “ rather than fixing the problem is easy.
"Britons made to pay for country’s housing crisis" What does 21% IVA on tourist rentals have to do with Britons, specifically? It appears that everyone would have to pay it, regardless of nationality. EU or not. Besides, this proposed law is unlikely to be approved anyway. Ironically, Britons only account for less than 20% of tourism in Spain, and overwhelmingly prefer hotel accommodation over private lets. Whereas private lets and villas are overwhelmingly booked by non-British nationalities. This sounds suspiciously like yet another self-flattering, "victim card" wind-up.
Legislating increased taxes on foreign home buyers can be ineffective because it often doesn't address the root causes of housing affordability issues, can be easily circumvented, and may not significantly reduce foreign buyer activity. Additionally, it can have unintended consequences on local markets and the broader economy. Here's a more detailed explanation: 1. Doesn't Address Underlying Issues: Supply and Demand: Housing affordability problems are often driven by a shortage of available housing relative to demand. Simply taxing foreign buyers doesn't increase the supply of homes or address other factors like high interest rates or stagnant wages. Speculation vs. Investment: Foreign buyers may be motivated by investment rather than speculation. A tax might discourage some buyers, but others may still invest, even if they pay a higher cost. 2. Can Be Easily Circumvented: Proxy Purchases: Foreign buyers can use local residents or companies as proxies to purchase properties, circumventing the tax. Capitalization and Delay: Some foreign buyers might capitalize on the tax by buying properties before it takes effect, then delaying the sale to avoid the tax. 3. Limited Impact on Overall Market: Foreign Buyers' Share: In many cases, foreign buyers represent a small percentage of the overall housing market. A tax might have some impact on a small segment, but it's unlikely to drastically change the overall dynamics. Local Demand: The primary drivers of housing affordability are often local demand, particularly for first-time homebuyers and those seeking to move up the ladder. A foreign buyer tax doesn't address the needs or concerns of local residents who can't afford the current market. 4. Potential Unintended Consequences: Market Slowdown: A tax could cool demand, particularly in hot markets, potentially harming local businesses and construction industries. Shift in Investment: Real estate might become less attractive to foreign investors, potentially leading them to invest in other sectors. Administrative Burden: Implementing and enforcing a tax on foreign buyers can be complex and costly for governments. Negative Sentiment: The tax could create negative sentiment among foreign investors, potentially deterring future investment in the country. 5. Focus on Other Solutions: Increased Housing Supply: Governments should focus on increasing the supply of housing through incentives for developers, relaxing zoning regulations, and streamlining permitting processes. Affordable Housing Programs: Investing in affordable housing initiatives can address the needs of low- and middle-income households. Address Local Demand: Policies that target local demand, such as higher mortgage rates or stricter lending requirements, might be more effective in slowing price appreciation
Facists.