Pedro Sanchez it never contradicts itself. Like any worthy left-wing leader, the Spanish Prime Minister proves himself once again obsessed with taxes. Yesterday the leader of the socialists, among the twelve measures envisaged in the plan to deal with the housing emergency in the country, announced a tax up to 100% of the value of properties purchased by non-residents of non-EU countries. Foreigners who buy properties in Spain “not to live there, but to speculate” have ended up in the sights of the idol of the local left. But the tax risks representing a boomerang, especially as regards the tourism.
Brake trades aimed at speculationthe path traced by Sanchez, a way to ensure that homes on the market are accessible to residents. In short, the real estate crisis in Spain would be linked to foreigners – English first and foremost – owners of second tourist homes. The Spanish prime minister pointed the finger at the 27,000 who purchased properties in 2023, mostly English, American and Moroccan citizens, attracted by the climate, food and sea of the Balearic Islands and the Costa del Sol. They would be to blame if residents are unable to access housing at prices that are unaffordable for them.
“Those who bought a house did not do so to live in, they did not do so so that their families had a place to live, they did so to speculate, which in the context of shortage in which we find ourselves, obviously cannot allow” Sanchez’s j’accuse. His program includes the expansion of the public social housing park – today equal to only 2.5% of the offer – and one battle against tourist rentalswith a tax reform so that accommodation intended for this use – just think of Airbnb – is subjected to taxation comparable to that of other economic activities with an ad hoc VAT.
But that’s not all. Sanchez has in fact put on the table a 100 percent Irpef tax exemption for owners who rent houses at prices equal to or lower than the reference price index, even if not located in residential areas under stress due to the high request. And again, the increase in taxes for make seasonal rentals inconvenient: “It is not fair that those who own three, four, five short-term rental apartments pay less tax than hotels.”
For avoid “a society divided in two: rich owners and poor tenants”Sanchez announced that he will promote the listing of more rental apartments through several measures. A program will also be launched to redevelop empty homes and make them available for affordable rental, offering assistance to those who renovate an apartment to make it available for affordable rental for at least 5 years.
“Average house prices in Europe have increased by 48 percent in the last decade and it is unsustainable,” continued Sanchez, who defined housing as one of the main challenges facing the West, especially for the middle classes and workers. Obviously there is no shortage of controversies. The People’s Party, through spokesperson Borja Semper, defined the measures as “interventionist” on the real estate market and intended to produce “higher prices and less supply”.
Time will judge Sanchez’s swerve, but there is a lot of underlying populism. As has often happened, the prime minister’s announcements are linked to awave of protests: In recent months there have been demonstrations for affordable housing and protests against high rents and the impact of mass tourism across Spain.
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