Sánchez to stop Britons buying second homes in Spain - Great headline but far from the truth

The official statement/press release: 

Many articles have been published questioning whether this was a slip of the tongue by the PM. We can confirm this is backed by an official press release here. 

The relevant part of the press release states: “"...after a thorough study, the purchase of homes by non-resident foreigners from outside the EU will be limited. More specifically, the tax burden they will have to pay in case of purchase will be increased to 100% of the value of the property, in line with countries such as Denmark and Canada."

At a political rally on Sunday (January 19), Pedro Sanchez said:

"...we are going to propose that those non-EU foreigners who neither reside here nor have their families residing here, and are therefore merely speculating with these homes and properties, be ???????????????????????????????????????? from purchasing them in our country..."

Who does this affect? Non-resident buyers from outside the EU. So if a buyer plans to relocate and become a resident, this doesn't apply.

I am from outside the EU. Can I still buy a property in Spain? Yes. Nothing has changed. 

I am from outside the EU planning on moving to Spain and becoming a resident. Will this affect me? No. The PM specified it would apply to non-residents. 

I am from outside the EU. Can I become a resident in Spain? Yes, there are several options available to you 

Could it really mean paying double? We don't think so, but we don't know. The PM said up to 100% of the property value. No further details are available. See comment below from a Spanish lawyer.

Is this now law? No. At the time of writing, this is not the law in Spain. 

How likely is it that it will happen? We don't know.  Any changes to or new taxes require parliamentary approval. Given the government's minority status, passing the legislation may present challenges.

Spanish Lawyer Miguel Manzanares the CEO of leading Costa del Sol-based conveyancing lawyers Manzanares Lawyers writes in a statement that new information has come to light that provides “clearer guidance on the intended direction of this measure. “It appears that the proposal does not refer to a tax equating to 100% of the property value but rather to a 100% increase in the applicable tax on property acquisition for non-EU, non-resident buyers.”

This adjustment significantly alters the interpretation and reduces the perceived extremity of the policy he writes and in any case “The legislative process requires thorough drafting, consultation, and parliamentary approval, which, in this case, seems increasingly challenging given the lack of majority support.”

 

Mark Stücklin, Spanish property expert and owner of Spanish Property Insight writes: “While Sánchez’s proposal has generated headlines, it’s unlikely to result in any concrete measures that affect British and American buyers on Spain’s costas, at least not anytime soon.”