Spain announces new law for Brits hoping to buy homes – huge tax bill explained

Brits with dreams of trading our drizzly isles for sun-soaked have been hit hard by PM .

The Spanish Prime Minister declared earlier this week that non-resident citizens from countries outside the , including the UK, would be slapped with a hefty tax bill if they wished to purchase in Spain.

This move is part of a series of measures aimed at reducing living and housing costs for Spanish nationals.

As reported by El Econimista, could end up paying twice as much.

“For them, the tax burden will be up to 100 percent of the value of the property,” Sánchez announced, as per Ultima Hora.

“In 2023 alone, non-residents from outside the bought 27,000 houses and flats. Not to live in them, but mainly to speculate. To make money out of them. Something that, in the context of the shortages we are experiencing, we cannot afford’.”

While Brits could still technically purchase properties in Spain, the sky-high tax rate would make it prohibitively expensive, effectively pushing all but the most resolute buyers out of the market, reports

Sánchez is set to introduce a series of policies aimed at tackling the impact of international money on the everyday lives of Spanish citizens.

Although details and timelines are yet to be announced, these measures follow his recent abolition of “golden visas,” which offered residency to individuals purchasing property worth over €500,000.

On Monday, Sánchez pledged significant investment in affordable rental properties to stabilise private sector rents and vowed to regulate holiday lets, including Airbnbs. The government’s plans will largely depend on regional and local authorities for implementation.

In an effort to fill vacant homes, tax incentives for landlords and protections against non-payment are being considered, according to In Spain News.

A fund will also be established for Spain’s 17 regions and local councils to apply for money to increase inspections of tourist properties, ensuring they are licensed and properly managed.

Amidst a severe housing shortage, the Spanish government and local authorities, including the Balearics, have discussed limiting home sales to non-resident Britons.

“Average house prices in Europe have risen by 48 percent in the last decade, and it is unbearable. Housing has become the biggest problem for the middle and working classes in Spain and in Europe,” Sánchez stated.