Far-left party and former government coalition partner Podemos has called for a temporary ban on property purchases by non-resident foreigners in Spain, regardless of whether they’re residents in the EU or not.
Spanish far-left party Podemos has proposed a ban on property purchases by non-resident foreigners in Spain, including those resident within the EU, claiming that the government should prioritise those who “live and work in Spain” rather than what it calls “the tourist market”.
Previous call for such limitations have mainly been suggested for property buyers who reside outside of the European Union, whereas Podemos is calling for the moratorium to apply to French, German, Swedish and other EU residents as well as anybody else who doesn’t reside in Spain.
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The left-wing party, a former junior coalition partner in the ruling Socialist (PSOE) government, made the proposal this week from Murcia, one of the regions of Spain where non-resident foreigners buy the highest proportion of property anywhere in the country.
READ ALSO: Property in Spain – More homes for sale over €1 million than rents under €1,000
These are often for second homes or investment purposes, the party argues. Communications secretary, Víctor Egío, stated that “more than 15 percent of homes are bought by Europeans looking for a second home in Spain or investing in property for speculation.”
A recent report from the Association of Registrars highlighted that the market is increasingly dominated by non-resident foreigners in the region, with Murcia being the area of the country with the fourth most property sales to buyers looking to “speculate” on the market. This comes at a time when property prices are soaring in Spain and pricing out many locals.
According to Egío, this “added demand” puts “tremendous pressure on the property market and makes housing even more expensive.”
As such, Podemos is calling for a ban on purchases by non-resident foreigners, regardless of whether or not they are from the EU.
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This follows a series of attempted measures by government to try and intervene in the property market.
In January, the Sánchez government announced a plan with 12 measures to promote access to housing, including a new 100 percent tax on the purchase of property by people who don’t reside in the EU that essentially doubles the price.
However, Podemos and Egío argue that in reality “absolutely nothing has been done”, suggesting that “the vast majority of citizens believe that the price of housing is a problem and that it must be limited,” a demand that “when it comes down to it, only Podemos defends with its proposals.”
READ ALSO: Spain’s 100 percent property tax for foreigners weakened by new court ruling
Sánchez made international headlines with his proposed 100 percent tax. Initially this was viewed as political grandstanding amid a deepening housing crisis, but then his party lodged a formal proposition in the Congress, suggesting that the Sánchez government intends to move forward with the controversial measure.
Lawyers have already spoken up about the fact that the tax, if approved, will end up in EU courts.
There have also been calls to actually block temporary foreign residents from buying property in Spain if they haven’t first lived in the country for five years, a suggestion made by left-wing Catalan party ERC.
INTERVIEW: ‘Spain’s 100% tax on foreign buyers will end up in EU courts’
Other attempts have been made to limit non-residents from buying homes in the Canary Islands and the Balearic Islands.
