'It's a blow': Warning to Brits after Spain reveals 'extreme' plans targeting them

Spain’s plans for an ‘extreme’ hike in property prices will be a blow to British buyers and could see them look elsewhere, experts have warned.

The country’s Prime Minister Pedro Sanchez has proposed a 100per cent tax on properties bought by non-European Union residents in a bid to ease pressures on the country’s housing pressures.

One expert has described the tax increase as “quite extreme”, even when factoring in that Spain is addressing its housing emergency and looking after Spanish citizens.

Toby Leek, president of property professionals’ body NAEA Propertymark, said: “Many Brits may take the news of heightened property taxes in Spain as a blow considering moving to such a location could well have been a lifelong ambition, especially with the convenient location and, of course, the improved weather it provides.”

Mr Leek added: “Many Brits will likely be put off by this extreme hike in property taxes and will be looking to other countries such as Cyprus and Greece with lower property tax levels for their dream home move.”

Pedro Sanchez has been quoted as saying the overall goal is to provide “more housing, better regulation and greater aid”. Non-EU residents bought 27,000 properties in Spain in 2023, “not to live in” but “to make money from”, he said.

Like the UK, Spain has been dealing with pressures on housing costs. Rents are seen as a particular issue in major cities such as Barcelona and Madrid, while house prices have also been rising. Levels of tourism and short-term lets have been seen as compounding problems.

Seila Sanches Lucas, a lawyer at international law firm Broadfield, who helps clients buy and sell property in Spain, said: “The proposal by the Spanish Prime Minister will be concerning for those that