The Spanish government has recently announced a measure that could significantly affect the purchase of property by non-resident foreign nationals outside the European Union.
This measure proposes a 100% increase in the tax applied to these transactions.
The primary goal of this initiative is to combat real estate speculation and address the housing accessibility crisis affecting many residents in Spain. Recent data shows that a significant proportion of properties purchased by non-EU foreigners are used for speculative purposes or as vacation homes, contributing to rising prices.
If implemented, this measure would double the tax burden for, amongst others, British and American buyers.
How Could This Impact You?
1. Increased Total Costs:
The new tax could substantially raise the final cost of purchasing a property, potentially affecting the economic viability of some projects.
2. Changes to Mortgage Terms:
Financial institutions may revise their lending criteria for foreign buyers. This could mean higher down payment requirements or unfavourable adjustments to mortgage conditions.
3. Increased Competition in the Rental Market:
As property purchases by foreigners potentially decrease, demand for rental properties could rise, leading to increased rental prices in some areas.
If you are considering purchasing property in Spain, and you already have a property in mind, it may be wise to proceed with the purchase before the new measure is introduced.
As your mortgage adviser, I am here to guide you through this changing landscape. Our commitment is to provide you with the most up-to-date information and work with you to find the best financial solution to meet your needs.
If you have questions or require a personalised consultation, please don’t hesitate to reach out to me.
Together, we can adapt to these changes and ensure that your dream of owning a property in Spain remains achievable.
Patricia Nadal