Spain intends to levy a tax of up to 100% on real estate purchased by non-residents from non-EU nations, like the UK.

Prime Minister Pedro Sánchez made the announcement, stating that the "unprecedented" action was required to address the housing crisis in the nation.

According to him, preventing the West from becoming a society split into two classes—rich landlords and impoverished tenants—is a major problem.

He told an economic gathering in Madrid that 27,000 residences in Spain were purchased by non-EU citizens in 2023, not to live in but to profit from.

Sánchez went on to say that [we] clearly cannot permit it given the situation of scarcity they are in. Therefore, the relocation was intended to give priority to inhabitants of the available dwellings.

Sánchez did not specify the tax's mechanism or when it would be submitted to parliament for approval, where he has frequently had trouble getting enough votes to approve laws.

However, his government stated that after careful consideration, the idea will be finalized.

The prime minister unveiled a dozen planned steps on Monday to increase the affordability of housing in the nation.

A tax exemption for affordable housing providers, the transfer of almost 3,000 residences to a new public housing organization, and stricter regulations and increased taxes on tourist apartments are among the other measures that have been outlined.

Additionally, he said it is unfair that short-term rental owners of three, four, or five flats pay less in taxes than hotels.