Spanish Government is considering banning UK citizens buying homes in Spain

12th February 2025

The Spanish government is considering measures to restrict non-EU citizens, including UK citizens, from buying homes in Spain. Prime Minister Pedro Sánchez has proposed a plan to ban non-EU foreigners who are not residents from purchasing properties in the country. This proposal aims to address Spain's housing crisis by prioritizing housing for residents and limiting speculative transactions

The proposal includes a potential 100% tax on property purchases by non-EU, non-resident buyers4. However, it is still unclear whether this proposal will be passed into law and what the specific details will be.

Several factors contribute to this issue:

Limited Housing Supply: Since the 2008 financial crisis, new housing construction has slowed considerably. The country now struggles to produce enough homes to meet the growing demand.

Regulatory Challenges: Complex and lengthy processes for obtaining construction permits and regulatory uncertainty have hindered new housing developments.

High Demand: Increased demand for housing, especially in major cities like Madrid and Barcelona, has outpaced the supply. This demand is driven by factors such as population growth, immigration, and tourism.

Vacation Rentals: A significant portion of Spain's housing stock has shifted to vacation rentals, reducing the number of homes available for long-term residents.

Economic Factors: The high cost of land and construction, along with limited access to financing for developers, has further exacerbated the housing shortage

The Spanish government's proposal to restrict non-EU citizens, including UK citizens, from buying homes in Spain is still in the early stages. The proposal aims to address the housing crisis in Spain by giving priority to residents and reducing speculative property purchases that drive up prices. Here are some key points about the proposal:

Objective: The proposal aims to prioritize housing for residents and limit speculative transactions that can drive up property prices and make housing less affordable for locals.

Potential Measures: The proposed measures could include a ban on non-EU, non-resident foreigners from purchasing properties in Spain or imposing a 100% tax on property purchases by non-EU, non-resident buyers.

Current Status: The proposal is still under discussion, and it is unclear whether it will be passed into law. The specific details and implementation timeline are yet to be determined.

Impact on UK Citizens: If the proposal is implemented, UK citizens who are not residents of Spain may face restrictions or higher costs when buying property in Spain.

This proposal is part of a broader effort by the Spanish government to address housing affordability and ensure that housing is available for residents. It is important to keep an eye on any developments and official announcements from the Spanish government regarding this proposal.