Home » Spanish PM now aims for outright ban on non-resident buyers from outside the EU

Spanish PM now aims for outright ban on non-resident buyers from outside the EU

Pedro Sánchez, Spanish PM

The Spanish Prime Minister Pedro Sánchez has escalated his campaign against foreign investors in Spanish housing, aiming to ban non-resident buyers from outside the EU like holiday-home buyers from the UK.

Speaking at a Socialist Party rally in Extremadura on Sunday, 19th January, Sánchez announced his government’s intention to propose a ban on non-resident buyers from outside the EU. Here’s what he said (my translation):

“It also means, comrades, that in the year 2023, to give us an idea—this is the latest data we have—23,000 houses and apartments were sold to non-resident, non-EU foreigners. So, not people from the European Union, but from outside. We are also going to propose a ban on these non-resident, non-EU foreigners, who don’t live here or their families, from being able to buy these houses and apartments in our country, as they are solely speculating with these properties.”

This announcement goes further than his earlier policy proposal, revealed on Monday, 13th January, to impose a tax of up to 100% of the price of residential property purchases by non-resident, non-EU buyers.

Conflicting statistics and claims

While Sánchez initially claimed that this group purchased 27,000 homes in 2023, he revised the figure down to 23,000 in his latest statement. However, data from the Spanish notaries association paints a different picture, putting the actual number at 18,648.

Sánchez argues that non-resident buyers from outside the EU are speculators who inflate property prices, making housing less affordable for locals. He believes these measures—whether through taxation or outright prohibition—will address the problem.

Potential impact on foreign buyers and local markets

If enacted, this ban would primarily affect British and American buyers, many of whom purchase holiday homes along Spain’s popular coasts with a view to eventual retirement. The British have historically played a significant role in the property markets of regions such as the Costa del Sol, Costa Blanca, and Murcia.

Critics argue that such measures would devastate housing markets in these areas by removing a key segment of demand without addressing the real issue of housing affordability in Spanish cities, where the problem is most acute. Prohibiting non-EU foreign buyers would likely have little impact on the availability of affordable housing in urban centres like Madrid and Barcelona, where local demand and other factors drive up prices.

Learn more about the segment

For a deeper dive into the non-resident, non-EU buyer segment and their role in the Spanish property market, check out our detailed report: Non-resident buyers from outside the EU.

You can also watch the latest statement by Sánchez in this video (relevant section between 1:25:50 and 1:26:30 or in the video below.