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[News] Spain plans 100% tax on non-EU owned homes



Herr Tubthumper

Well-known member
NSC Patron
Jul 11, 2003
63,373
The Fatherland
Don’t Germans have to pay a “ 2nd home” tax if they buy another house outside Germany?

My mate has put his villa up for sale in Spain last week due to lots of new “taxes” being levied on non eu residents. He had a local tax levied of €400 last week which he thinks is one of a few the local government taxes they are bringing in to discourage holiday homes as they have the same lack of affordable houses for locals. ( his is north of valencia)
I don’t think so. I have friends with 2nd homes in, have a guess, and I’m haven’t heard them talk about this. I can ask.
 




East Staffs Gull

Well-known member
Jan 16, 2004
1,426
Birmingham and Austria
That would be correct, it would be illegal under EU law/courts.
Isn’t the issue that if they applied the tax to EU residents, EU law would require it to also apply to Spanish residents, which of course the Spanish PM would not want. Ideally they’d want the tax to apply to all non-Spaniards.
 


Hamilton

Well-known member
NSC Patron
Jul 7, 2003
13,072
Brighton
But they won't be affected will they? Because they have dual nationality, or at least should have if they lived there before Brexit. This will surely only affect anyone post Brexit thinking of moving there. And anyway, people from all over the world move there including millions of illegal immigrants. Sure it's aimed at them more than a few leathery Sun readers (not my words). Still, any opportunity to blame everything and anything on Brexit it seems :)
I know more than a few who had homes abroad before Brexit and who do not have dual citizenship. Such a Tex would have an effect on them.

These taxes are never good for inward investment. There’s a difference between affecting the price of properties for Spaniards and a blanket tax like this. Sounds like he’s playing to the domestic crowd.
 


Boroseagull

Well-known member
Aug 23, 2003
2,169
Alhaurin de la Torre
Westdene Seagull said:
It also means we can't remove vat from items and services. So for example, we can't remove the disgusting 8.5% VAT on gas and electricity. We either keep it as is or hike it to 15% minimum.

Well VAT on electricity reverted back to the full 21% as of January 1st from its lower rate (Covid era) of 10% in Spain.
 


Bakero

Languidly clinical
Oct 9, 2010
15,103
Almería
Living in Spain, through your sample size of British ex-pats and second home owners, are they all leather-skinned Brexiteers?

The folk I know who own homes in Spain are by and large very Remain and were in 2016. They say Brexit made life difficult for them in Spain, in terms of worries and new red tape.

I'm afraid, well thankful, I don't know any leathery-skinned Brexiteers. Most of the British immigrants I know here are young (ish) people working in fairly low paid jobs. I know a couple of older Brits who do own property in the UK too but they're all permanent residents here. Both groups were adversely affected by Brexit, the increased red tape, and the limiting of opportunities.
 
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Weststander

Well-known member
NSC Patron
Aug 25, 2011
70,371
Withdean area
I'm afraid, well thankful, I don't know any leathery-skimmed Brexiters. Most of the British immigrants I know here are young (ish) people working in fairly low paid jobs. I know a couple of older Brits who do own property in the UK too but they're all permanent residents here. Both groups were adversely affected by Brexit, the increased red tape, and the limiting of opportunities.

That destroys the nsc thread stereotype :lol: .
 


Smile

Active member
Aug 19, 2011
238
A Spanish solicitor sent me this today which puts it into perspective.

We have recently heard concerning news regarding potential government measures that may make it more difficult—or even impossible—for non-EU citizens to purchase property in Spain. Additionally, there is talk of imposing a 100% tax on property purchases by these citizens.

Firstly, it is important to note that this information stems from a speech given yesterday by the Spanish Prime Minister. At this stage, these are political statements rather than concrete legal measures. This is comparable to the approach often taken by British politicians with so-called "green papers." Such statements are intended to draw public attention and garner political support—particularly, in this case, from hard-left voters and thinkers—without immediate legal implications or short-term implementation.

While this situation warrants attention, there are two key reasons why we should remain cautious but not overly alarmed:

Parliamentary Approval Required:
Any such measures would need to be submitted to the Spanish Parliament for approval. The current government relies on the support of several smaller parties, including a conservative Catalonian party that opposes such initiatives. Without their backing, these measures are unlikely to advance.

Regional Implementation:
Real estate regulations and taxation fall under the jurisdiction of regional governments rather than the national government. The regions of Murcia, Valencia, and Andalusia, currently governed by conservative administrations, are unlikely to implement such measures even if they are approved nationally. For instance, a previous real estate law passed several months ago received minimal attention because the regional government in Murcia chose not to apply it.

In light of these points, there is no immediate cause for significant concern. This appears to be more of a political manoeuvre aimed at deflecting attention from current challenges faced by the national government rather than a genuine attempt to penalize non-EU citizens interested in purchasing property in Spain.

Rest assured, I will keep you informed of any further developments from the government on this matter. In the meantime, I encourage you to avoid undue worry or alarm.
 








Blues Guitarist

Well-known member
Oct 19, 2020
666
St Johann in Tirol
What's quite surprising is the number of people who have "liked" posts complaining that Brexit has brought this about and hence Brexit is a Bad Thing, and have also "liked" posts saying we should introduce this ourselves which we can now do only because of Brexit, and hence Brexit is a Good Thing.
I think there are two separate, but linked ideas.

One is the specific implementation by Spain which would be bad for UK citizens because of Brexit.

The other is the idea of limiting buy to let and holiday home ownership in order to avoid house price inflation that prices locals out if the market. If managed properly it can create two distinct property markets which would protect locals while allowing investors to participate in the market without distorting it.

P.S. For the avoidance of doubt, Brexit was a bad thing.
 










portlock seagull

Well-known member
Jul 28, 2003
18,077
I know more than a few who had homes abroad before Brexit and who do not have dual citizenship. Such a Tex would have an effect on them.

These taxes are never good for inward investment. There’s a difference between affecting the price of properties for Spaniards and a blanket tax like this. Sounds like he’s playing to the domestic crowd.
I thought - like here - everyone who’d been living in the EU as a place of residence with British nationality was allowed to apply for. Now I’m learning people who’d not called UK home for decades it seems we’re forced to relocate back to Blighty. Seems very unfair.
 


Bakero

Languidly clinical
Oct 9, 2010
15,103
Almería
The article says that the tax will apply to "non-resident non-EU foreigners". People who want to buy a house and live in it won't be affected.

Please refrain from posting these facts and attempting to bring this thread back onto topic 👍🏻

I don't think that is a fact. "Non-resident" refers to anyone that does not have the legal right to live in the country. Buying a house does not confer that right.
 




Harry Wilson's tackle

Harry Wilson's Tackle
NSC Patron
Oct 8, 2003
57,338
Faversham


Bakero

Languidly clinical
Oct 9, 2010
15,103
Almería
I thought - like here - everyone who’d been living in the EU as a place of residence with British nationality was allowed to apply for. Now I’m learning people who’d not called UK home for decades it seems we’re forced to relocate back to Blighty. Seems very unfair.

Everyone who was in Spain before the triggering of article 50 had the right to remain. After 10 years you can claim permanent residency. This does not make you a dual national though.

It is possible to apply for citizenship once you have permanent residency but that involves a language exam, a test on cultural knowledge and, crucially, giving up your British citizenship. You can't become a dual-national in Spain unless you're from a former colony.
 
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