Spanish estate agents in revolt over 100% holiday home tax on Brits

Spanish estate agents have slammed the proposed 100% property tax for non-EU buyers as ineffective and “populist” as Brits turn to other European countries. 

The Government plans to , introduce additional charges on holiday homes, and abolish the ‘golden visa’ programme for overseas investors.

In a forceful statement, the Marbella-based Leading Property Agents of Spain (LPA) highlighted the ineffectiveness of similar policies in other nations.

It said: “The proposed measures are not grounded in solid evidence and have failed to deliver results in countries like Canada and New Zealand, where similar strategies were tried.

“Instead, they penalise investment and fail to address the structural .”

The group also cautioned that such “populist” moves might provoke legal disputes in European courts due to discrimination based on nationality,  reports.

The LPA emphasised the crucial role of foreign investment in “economic growth and sector stability” and suggested alternative approaches to tackle Spain’s housing problems.

It suggested that existing housing stock could be upgraded through Government schemes and more land could be made available for building, focusing on .

It added: “The Government should prioritise responsible policies that benefit citizens and investors alike, rather than fuelling discontent with divisive rhetoric.”

Spanish Prime Minister defended the proposed ban on non-EU property purchases, which is still under discussion, saying it aims to prevent speculation pushing house prices beyond reach.

He said: “We are going to propose to in our country, in cases where neither they nor their families reside here and they are just speculating with those homes.”

Mr Sanchez cautioned against becoming “a society divided into two classes, the rich landlords and poor tenants” after non-EU residents bought 27,000 properties in Spain in 2023 “not to live in” but to “make money from.”