Spain, France, Greece... tax on property purchase from non EU citizens

[ManuelCanova]

Apologies if there's already a thread on this. I couldn't see one.
I have no bone in this fight.

As far as I understand the tax would be applied to the new purchase of properties by non EU residents. Anyone from the EU would not be subjected to the tax and can carry on buying properties and renting them via Airbnb, etc. and it'll be even easier for investment groups to keep hoarding property and land as there will be less potential cash buyers.

Best case scenario, maybe 2/3 of prospective buyers from outside the EU won't purchase (that would be roughly 9000 properties in Spain, out of 27000 sold to non EU pp). I fail to see how anything that is being discussed could possibly help any housing problem, what am I missing?

I guess prospective foreign buyers either don't buy or pay a massive whack of tax so it's a win-win. I reckon it's a good idea.

No it's not a bad idea, it just doesn't seem to be solution to much at all.

Better to try it than do nothing. Spain in particular has a massive housing problem for their own population. Rents are out of reach, properties for sale have increased in value/price by over 40%.

At least if non EU are excluded it will discourage SOME purchases of holiday homes.

The tax is 100% afaik.

Brexit means that British purchasers are included in the tax now too.

Governments are supposed to ensure that people are housed, fed, educated, protected.

If they aren't doing that sort of stuff what is the point of them.

Allowing your housing stock to be sold off to airbnbs or for holiday homes and in the process making housing costs unaffordable for citizens is not housing your citizens.

I think they should hit the existing non eu property holders harder. Property is illiquid and very hard to avoid taxes on. We should do it here too.

It’s an eye catching potential vote winner. Government being seen to do something. No impact on Spanish voters.

Will the UK government bring in a reciprocal tax?

I think on the whole it’s a good idea and we should do it here too. Though it would cause a collapse of property prices in central London. Which some people would say is a good thing 🤷🏼‍♀️

The government want to introduce other measures to try for property owners not to do holiday lets, like no tax to be paid on your income from rentals if you rent to residents in Spain and the rent follows the government law. In some areas of Spain, for long term let's, there is a maximum you can charge depending on the area and size of the property

Yes it sounds like a good idea.

I think you should only be allowed to buy property/land in U.K. if you are U.K. resident.

Wonder if Uk would do the same? The country here has a huge shortage of housing, hence need to build on green belt land etc….

Governments are supposed to ensure that people are housed, fed, educated, protected.

What a peculiar idea. Are you getting treatment ?

When we moved back from France we had to pay stamp duty at 7% on the flat we bought in England
Our French house was in the process of being sold, we had buyers commited by French law but the purchase counted as a second property.(The 7% tax ( 5% because under £250k 2% because we were non UK residents , it goes up on more expensive properties) was refunded after we were able to prove that we'd sold the French house
Presumably this tax already applies to most other non resident purchasers. It could be increased.
Edited to correct tax amount

Sounds like a good idea.
We lost the plot with Airbnb and co. imo when it became a business model, instead of an occasional mean to make some cash with your own property, or even more regular income by using an otherwise empty outbuilding.
It was quite nice at the start but the way it has transformed the housing market everywhere, for families, students and locals has gotten completely out of hand.

It's been strange to watch since some of these EU countries's taxation systems discourage using the housing stock as a speculation tool, but the boom in holiday rental bypassed everything.

When people started protesting in Spain I thought, no chance, that ship has sailed so I am actually surprised that governments are talking about this, hopefully something will change.

I wonder if EU rules prevent Spain from saying anyone not a Spanish resident will be included in the new tax?

I don’t believe so, because you’ll soon be able to be resident anywhere in the EU if you hold residency in one place - so essentially a German resident wouldn’t be charged the tax anyway, as they can apply as a Spanish resident.

Why on earth would EU rules prevent a sovereign nation from making it's own decisions on tax ?

An EU member state cannot impose a tax on non-residents who are EU citizens if it discriminates or unjustifiably restricts their rights under EU law. However, careful design of the tax—ensuring it is justified, proportionate, and non-discriminatory—could make it permissible.

Spain had an issue with non EU buying housing for reisdency purposes and driving prices up. Limit was iirc 500k do lots of sellers upped prices ridiculously to that and it priced out locals. Iirc it blew up mainly due to Russians buying up after Ukraine war wasn't a three day operation.

The people don't live there often. They just price out locals and then it's out of use or rented.

Sour grapes. Over 24 years Spain received 95 Billion more from the EU than it contributed. We were a net contributor to that.

Overseas buyers do pay an additional % on the stamp duty. I had to when I was working abroad.

Not any more though !

@YouveGotAFastCar I'm a French resident but UK citizen. I only have the right to live in France, nowhere else in the EU. Is something changing?

So the Germans and Dutch will buy more and Brits less.

Holiday properties in seaside villages won’t be suitable for Spanish families needing to be near work and schools.

Can’t see why this will help.

Will stop the far east and Russian buyers ( although I don't think they can at moment) I'm presuming it will stop Brits too - !!

Foreign buyers both EU and non EU also buy in the big cities.

The holiday resorts need workers in the tourist industry. At the moment they cannot find anywhere to live near their work. That was one of the main reasons for the protests in the Canaries and elsewhere.

Might put a stop to their gallop alright and yes, it will include British buyers. So they will look elsewhere I suppose. There are other EU countries that don't (as yet) have restrictions on non EU property buyers.

Albania is looking hot for a punt right now. It's up and coming and needs outside investment to maximise its potential. Just a guess, I've no inside info!

They were set up nicely as they were actually quite a poor country. Along with others such as Romania and Poland.

Even that came back to bite us, as those from the poorer eastern side of Europe no longer need to come here veg picking. Their own countries now being prosperous.
Can't say I've seen the benefits from all the pay outs we've saved. Have you?