Filenews 16 January 2025
Britons will invest their money in countries like Greece and Cyprus instead of Spain over plans for an "extreme" rise in property taxes, UK experts have warned.
According to British media, measures proposed in Spain to relieve pressures on the housing market include a tax increase of up to 100% on properties purchased by non-residents of the European Union.
Toby Luc, president of NAEA Propertymark, an organisation of property professionals, said: "Many Britons may see the news of rising property taxes in Spain as a blow, given that relocating to such a destination may have been a lifelong ambition, especially given the convenient location and, of course, the better weather it offers."
He added that while it is understandable that Spain is tackling the housing crisis and taking care of its citizens, this proposal represents "a fairly extreme increase".
Mr Luc said: "Many Britons will likely be discouraged by this extreme rise in property tax and will turn to other countries, such as Cyprus and Greece, where property tax levels are lower, to realise their dream of buying a home."
Spain's prime minister, Pedro Sanchez, said the overall goal was to provide "more housing, better regulation and more support".
According to Sanchez, non-EU residents bought 27,000 properties in Spain in 2023, not to live in them, but "to earn money".
Like the UK, Spain is facing pressure on housing costs.
