‘The Spanish holiday villa dream is over, thanks to Brexit.’
Spain’s Prime Minister Pedro Sánchez has announced that non-EU citizens will face steep taxes when purchasing property in Spain.
The measure is in response to soaring rents, stagnant wages, and rising house prices, making affordable housing a pressing issue, especially for young people.
Property prices are rising rapidly, particularly in popular coastal areas and cities, where foreign buyers, especially from the UK, purchase second homes, often to rent out as holiday accommodation.
Many locals blame the lack of affordable housing on ‘overtourism,’ with protests regularly taking place across the country.
To curb the pressure on housing availability, Spain is proposing an up to 100 percent tax on properties bought by non-EU residents.
In 2023, foreign nationals from outside the EU purchased 27,000 properties in Spain, many of which were used for speculation rather than as primary residences. Sánchez has framed the proposal as part of a broader effort to improve housing access, regulate the market, and provide greater support to locals.
But the issue is not unique to Spain. Similar concerns have surfaced in other European hotspots, such as Portugal, where foreign buyers are increasingly purchasing properties for short-term rentals at the expense of locals.
Portugal, France, and Greece are reportedly considering similar measures to limit property purchases by non-EU citizens.
To address the issues, in 2023 France passed a law tightening regulations on the short-term rental market.
Needless to say, the pro-Brexit press reacted hostilely to Spain’s proposed policy. The Daily Mail sensationalised the announcement, framing it as a “war on Brits’ holiday homes,” claiming that other EU nations, such as France, Greece, and Portugal, are also turning against tourists and expats.
“The abrupt response from the government is part of a wider trend of leaders hurriedly trying to respond to growing malaise with perceived over-tourism and a lack of decent, affordable housing,” the article continued.
However, many readers pointed out that the issue extends beyond British buyers. Some suggested that the UK should implement similar measures to curb the negative effects of foreign property investment. One reader wrote: “The UK should heavily tax foreign buyers of property too. The world needs to revert to viewing property as a place to live rather than a speculative investment. All it does is create unsustainable debt bubbles which always eventually burst.”
Another agreed, saying: “It’s fair enough, the UK should adopt the same policy.”
The Express adopted a similar tone, with a headline reading: “War on Brits’ holiday homes as Greece, France, and Portugal set to join Spain.”
Again, many readers weren’t convinced. One comment highlighted that the issue is not exclusive to British buyers, noting that wealthy investors are pricing out locals in tourist areas across Europe, from the UK to France.
“Why such a headline?… It has nothing to do with the ‘Brits’ and people living in towns and tourist areas in the UK have the same problem… It is a real problem and something must be done about it,” they wrote.
Another pointed to how the measures aren’t just penalising the British.
“This is not against the British it is all third country non EU members.”
In contrast, the New European’s Jonty Bloom aptly captured the reality of situation with his headline: “The Spanish holiday villa dream is over, thanks to Brexit.”
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