Sat Jan 25 13:56:18 IST 2025: ## Spain Unveils Sweeping Measures to Tackle Housing Crisis

**MADRID** – Facing a severe housing crisis marked by soaring prices and limited supply, Spanish Prime Minister Pedro Sánchez announced a raft of measures Monday aimed at curbing speculation and increasing the availability of affordable housing. The most dramatic proposal is a 100% tax on homes purchased by non-EU citizens, a move designed to deter foreign investors from driving up prices.

The government argues that this tax, impacting approximately 27,000 purchases in 2023, targets those using property as a speculative investment rather than a primary residence. Other measures include increased taxes on short-term holiday rentals, aiming to level the playing field between individual landlords and hotels, and tax breaks to incentivize landlords to provide affordable housing.

The government also plans to expedite the construction of new homes, allocating two million square meters of land for the development of social housing. Currently, social housing accounts for only 2.5% of Spain’s housing market, significantly lower than other European nations. Further plans include combating fraud in the holiday rental market and abolishing the “golden visa” program, which granted residency permits to non-EU citizens investing in Spanish real estate.

The measures address a crisis fueled by several factors: a post-2008 housing bust, the COVID-19 pandemic’s impact on construction costs, complex land development regulations, and high youth unemployment, which keeps young people living at home longer. Mass tourism, particularly in coastal areas, has further exacerbated the issue. While tourism contributes significantly to Spain’s economy, it’s also been blamed for rising living costs and gentrification.

The proposed measures face an uncertain path to parliamentary approval, given Sánchez’s minority coalition government. While the Prime Minister emphasizes the urgency of the situation, acknowledging the lack of a “magic wand” solution, the success of these ambitious plans hinges on their implementation and ability to navigate Spain’s complex political landscape. The exact timeline for enacting these changes remains unclear.

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