Spanish PM Proposes to Ban Non-EU Nationals From Buying Homes

The Prime Minister of Spain, Pedro Sanchez, is proposing a ban on non-EU nationals from buying houses in this country as part of efforts to deal with the housing crisis.

He said that non-EU citizens purchased nearly 23,000 houses and apartments in Spain in 2023, Schengen.News reports.

100% Tax on Property Purchases by Non-EU Nationals
The statement of the Spanish PM, made today, January 20, follows a previous announcement made by him earlier this month.

On January 13, Sanchez said that he plans to impose a tax of up to 100 per cent on the value of properties purchased by nationals from countries outside the European Union in a bid to meet the country’s housing emergency.

Abolishment of Golden Visa Program
As part of measures to better manage the housing crisis, Spain also decided to terminate its famous Golden Visa Program, which offers residency to non-EU nationals in exchange for financial investments made in Spain and meeting the needed requirements.

In spite of contributing significantly to the country’s economy, the Residency by Investment scheme of Spain had a negative impact on the housing market, particularly its real estate investment option.

This option, the most sought-after one of Spain’s Golden Visa Program, allows wealthy foreign nationals to purchase properties worth 500,000 or more in exchange for obtaining residency in Spain and, with it, the right to move freely to all EU countries.

However, applicants interested in Spain’s Golden Visa Program can only benefit from it until April 3, 2025, which is the deadline for the termination of this program.

In December 2024, the Congress of Deputies in Spain approved the termination of the Golden Visa Program, with the confirmation of this decision being officially published in Spain’s Official State Gazette (BOE) on January 3, 2025.

In 2024, the Minister of Housing, Isabel Rodríguez, said that Madrid had intensified efforts to deal with the housing problem.

The minister said that the first step to reinforce the supply of affordable housing is to put an end to the Golden Visa Program.

In April 2024, Spain unfolded plans to put an end to its Golden Visa Program.

Source: https://schengen.news/spanish-pm-proposes-to-ban-non-eu-nationals-from-buying-homes/