Bloomberg reports that Spain’s prime minister, Pedro Sanchez, is proposing a ban on non-EU citizens purchasing homes in the country as part of a broader effort to curb speculative investment in real estate. The move is framed as a measure to ensure housing is directed toward residents and long-term buyers rather than quick, foreign profits. It reflects a growing debate in Madrid about how to balance foreign investment with the nation’s housing needs and social priorities.
According to the report, the government would bar non-EU foreigners from buying housing in Spain unless they and their immediate family actually reside in the country. The policy is designed to prevent purchases that are made solely for speculation or asset storage rather than for a home, a concern repeatedly raised by policymakers and housing advocates. If the family’s residence in Spain cannot be established, the purchase would be restricted under the proposed framework.
Sanchez highlighted a striking statistic: by the end of 2023, buyers from outside the EU had acquired about 23 thousand properties in Spain. At the same time, the nation faces a substantial housing shortage, with an estimated shortfall of around 200 thousand new homes needed each year to meet demand. The figure underscores the tension between limiting foreign competition and addressing the persistent housing shortage faced by Spanish households and newcomers alike.
The Financial Times notes that among those purchasing property in Spain, the majority have been British, with Moroccans following as a sizable group. There is also notable interest from buyers in the United States, Mexico, and Venezuela. This distribution highlights a diverse international interest in Spain’s real estate market, even as policymakers weigh limits on non-EU activity to protect domestic affordability and housing supply for residents.
Last week the Associated Press cited a source indicating that the Spanish government may impose a 100 percent tax on the declared value of real estate bought by non-EU citizens. Such a tax would represent a dramatic shift in the fiscal approach to foreign ownership, potentially altering the calculus for international buyers and influencing how real estate transactions are reported and taxed across the sector.
The discussion closes with a provocative question about relative prices: what kind of housing could be bought abroad for the price of a single-bedroom apartment in Butovo? The comparison serves as a reminder that housing costs vary dramatically across markets, and it underscores the broader conversations about affordability, investment, and access for residents in Spain as policymakers consider tightening rules on foreign purchases and speculative activity.