The Spanish government has introduced proposals addressing the housing crisis with notable tax consequences for foreign non-EU buyers. Key proposals include imposing taxes up to 100% on property purchases by these individuals or implementing outright purchase bans. These initiatives aim to prioritize housing for residents and discourage speculative investments. Similar measures exist in Canada and Denmark.
Currently in Catalonia, Property Transfer Tax and Stamp Duty rates range from 10% (purchase up to €600,000) to 13% above €1,500,000.
For investors, a 20% rate applies to residential purchases by large property holders and entire building acquisitions. Large holders are defined as individuals or entities owning five or more residential properties in high-demand zones, ten or more properties generally, or properties exceeding 1,500 m² combined. Registration with the Register of Large Housing Holders is mandatory, with penalties for non-compliance.
Additional government plans include reforming short-term rental taxation (Airbnb-style properties) to treat them as business activities aligned with hotel taxation, and offering tax incentives to owners renting at or below government reference prices.
The proposed ITPAJD increase for non-EU foreign buyers remains under consideration but has not been enacted. Current rates remain unchanged.
The firm’s view: foreign second-home buyers typically target coastal luxury properties that don’t compete with primary housing markets, where the actual affordability crisis exists in major cities.