Spain’s Prime Minister, Pedro Sanchez, has unveiled plans to tighten restrictions on housing purchases as part of his strategy to address the nation’s growing affordable housing crisis. The proposal comes after Sanchez suggested last week imposing a tax of up to 100% on property deals in response to soaring prices and high demand in the real estate market.
Speaking at a Socialist party gathering in Extremadura, Sanchez revealed that his government intends to ban non-EU foreign nationals from purchasing property in Spain, unless they or their families are residents of the country. “We are going to propose to ban non-EU foreigners from buying houses in our country, in cases where neither they nor their families reside here and they are just speculating with those homes,” Sanchez said.
The Spanish leader’s proposal is part of a broader 12-point program aimed at tackling the housing crisis, which includes offering more social housing, tightening regulations, and providing more support to renters. The initiative is a response to concerns over rising housing prices, exacerbated by a lack of affordable options for local residents.
Sanchez attributed the current housing issues to policies implemented by the conservative Popular Party during the 2008 financial crisis. According to the prime minister, non-residents from outside the European Union purchased approximately 27,000 properties in Spain in 2023 alone.
Data from the Spanish property registry revealed that British nationals were the largest group of foreign buyers in 2023, accounting for 9.5% of all transactions by non-Spanish nationals.
In addition to restricting foreign property purchases, Sanchez has also called for higher taxes and stricter regulations on tourist apartments, which he argues have contributed to the shrinking availability of residential properties. The surge in tourist rentals has been linked to rising rents and increased difficulty for locals in finding long-term housing.
The measures reflect the growing pressure on the Spanish government to address the country’s housing affordability crisis, as prices continue to outpace wage growth in many areas. With the proposed restrictions, Sanchez aims to curb speculation in the housing market and ensure that homes are available to those who need them most.
The government’s actions come as Spain faces mounting public dissatisfaction over the housing market, with many citizens struggling to secure affordable accommodation in major cities like Madrid and Barcelona. The proposal is expected to spark debate, with critics warning that it could discourage investment, while supporters argue that it is necessary to protect local residents from the effects of speculative buying.
