Mark StücklinSpain’s Socialist Party says a 100% tax on non-EU homebuyers will help fix the housing crisis—but the numbers tell a very different story.
The Socialist Party (PSOE) has presented an extensive justification—what’s known in Spain as the exposición de motivos—for its new proposal to impose a 100% surcharge on non-EU, non-resident buyers of property in Spain. The core argument is that Spain is facing a housing crisis that demands bold, redistributive action to protect access to affordable housing for middle and working-class Spaniards, especially young people trying to become independent.
According to the PSOE, the housing crisis is a structural social problem that requires a comprehensive response. Their proposed package of reforms aims to stimulate affordable rental supply, enhance public housing, curb speculative practices, and promote long-term housing security through a mix of fiscal incentives, regulatory tweaks, and new taxes—including this controversial new one aimed at foreign buyers from outside the EU.
What they say
The Socialists argue that:
- Spain’s housing crisis is hurting those most in need of state support—particularly younger generations and low-income families.
- The state must act decisively across three fronts: boosting supply, tightening regulation, and offering financial incentives.
- New tax measures will discourage speculation, particularly from investment vehicles like SOCIMIs, while directing capital toward affordable rental housing.
- Raising VAT on tourist rentals will help redirect homes from the short-term to the long-term rental market.
- And critically, imposing a new national tax on non-EU, non-resident buyers will reduce external pressure on Spain’s housing market and ensure property isn’t hoarded by foreigners “who don’t live here, nor their families.”
The PSOE frames all of this as part of a broader strategy to fulfil the constitutional right to dignified and adequate housing (Article 47 of the Spanish Constitution).
What’s wrong with the argument?
In theory, it sounds reasonable. In practice, it’s a misdiagnosis dressed up as policy. Spain does have a serious housing problem—but this proposal tackles the wrong market, targets the wrong people, and will cause new problems without solving the real one.
As shown in the data, non-EU foreign non-residents made up just 3% of total home purchases in Spain in 2024. Within that segment, the British (7,161 purchases) and Americans (1,521) dominate, together accounting for almost half of it. But these buyers are overwhelmingly purchasing holiday homes on the coast, not competing with Spanish families in the urban rental market. The idea that they are responsible for pricing young Spaniards out of housing is a myth.
None of this segment is active in the strained residential markets of Madrid, Barcelona, Valencia or Málaga—where the real affordability issues are concentrated. Instead, they buy in Andalusia, Murcia, the Valencian Community, the Balearic Islands and the Canaries, where they bring in outside capital, stimulate local economies, and provide ongoing revenue to local authorities through property taxes and spending.
By imposing a 100% tax on these buyers, the government will effectively tax this segment out of existence, depriving those regions of investment and depressing local housing markets that are currently buoyed by foreign demand. It’s a measure that solves nothing—except perhaps as a short-term PR win for a party seeking to outflank its left-wing rivals.
Political theatre dressed as policy
Let’s be clear: this is not the first time this idea has been floated. Back in January, Prime Minister Pedro Sánchez called for heavy taxation of non-EU buyers, particularly targeting British second-home seekers. Later that same month, he even suggested banning them outright, saying:
“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.”
The reality, of course, is that these buyers are not speculators. They are retirees, second-home owners, and lifestyle buyers who contribute to local communities and do not compete for affordable housing.
This proposal, therefore, appears to be less about effective policy and more about political posturing—designed to appeal to voters ahead of a potential early general election in 2026. By targeting a politically voiceless group (non-resident foreigners who can’t vote), the PSOE gets to look tough on housing without upsetting any domestic voting blocs.
But the real risk is that this rhetoric becomes law. And if it does, the damage to Spain’s coastal economies, property sector, and international reputation will be real, immediate, and entirely self-inflicted.
