Brits set to be slapped with 100% property tax in Spain

The new tax will be levied on non-EU citizens looking to buy homes in the country in a bid to make sure Spanish residents are prioritised.

Prime minister Pedro Sánchez has announced a new package of measures aimed at helping “prioritise the availability of housing for residents”.

Among them is a 100 per cent tax that will be levied on those purchasing a property, which will severely impact affordability for non-EU those residing in non-EU countries such as the UK.

Justifying the move, Sánchez said the 27,000 foreigners from outside the EU who purchased homes in Spain in 2023 bought properties “not to live in them, but to speculate”.

He added that house prices are one of Europe’s “main challenges, adding that “average house prices in Europe have risen by 48 per cent in the last decade and it is unbearable.”

The move comes after the Spanish prime minister announced plans to end the so-called ‘golden visa’ scheme in a blow to thousands of British expats.

It is set to end on April 3 this year as part of efforts to prioritise affordable housing for Spaniards.

The scheme currently allows non-EU citizens who invest around half a million euros in Spanish property to live and work there for three years.

The minimum required investment for the visa was €500,000 (£420,000).