Brits are worried about a potential 100% holiday home property tax. (Image: Getty)
and holiday home buyers in are now trying to back out of their agreements before a possible 100% property tax is enforced.
The Costa Blance region of Spain, which includes Alicante and Benidorm, is an incredibly popular destination for British expats, but is now facing the repercussions of the
Spanish Prime Minister announced on Monday that non-EU residents could have to pay an up to 100% on the value of their properties in order to make the housing market better for locals.
The measure has been by a collection of real estate agency associations in the region which are struggling to deal with the new influx of concerns.
Miguel Galindo from the association Asicval in Alicante said anxious Brits are “inundating agents” with queries and asking to back out of their deals, but the lack of a timeline from the government makes it hard to provide answers, .
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Non-EU residents bought 27,000 properties in Spain in 2023. (Image: Getty)
In 2023, non-EU residents bought 27,000 properites in Spain, and Alicante alone accounts for over 20% of property purchases made in the country by non-residents, generating upwards of £4.7 billion.
UK buyers were top of the list of non-EU residents snapping up properties, making 3,942 purchases, and the real estate sector has estimated that the new tax could affect deals on
Jesualdo Ros, general secretary of the Alicante Provincial Association of Developers, voiced concerns that the 100% tax will have a knock-on effect for the Costa Blance, for example by deterring investers from the region.
He also pointed out that the properties are not the same properties that local people would be buying anyway.
Ros questioned whether the measure would really save the Spanish housing market, or if it would merely alienate the crucial segment of the market that is foreign buyers.
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Marife Esteso, president of Alicante API College, added that the property tax could be detrimental to tourism as non-EU buyers help the economy by visiting local businesses and services.
She slammed Mr Sánchez’s idea as ineffective, adding that the government need to make more land available for development and enact better laws for rental property owners.
The prime minister wants to crack down on people “not to live in, but to make money from”.
He said: “The West faces a decisive challenge: To not become a society divided into two classes, the rich landlords and poor tenants.”