Spain plans to introduce a 100% tax on the value of real estate if it is purchased by non-European Union residents, Prime Minister Pedro Sanchez has announced, the BBC reports.
In this way, the government wants to solve the housing emergency in the country. “The West faces a crucial challenge – not to become a society divided into two classes: rich landowners and poor tenants,” he said.
Residents of countries outside the EU bought 2023 real estate properties in Spain in 27. Sanchez emphasized that “not to live,” but “to earn money on them.”
The prime minister has not yet announced when he will submit this proposal for approval to parliament, where he has often had difficulty gathering enough votes to pass legislation.
It is one of a dozen planned measures announced by Sanchez aimed at increasing housing affordability in the country. Other measures announced include tax exemptions for landlords who provide affordable housing, the transfer of more than 3 homes to a new state housing authority, and tighter regulation and higher taxes on tourist apartments.
Recall that a study was recently conducted that showed in which countries renting out housing brings in the most income. This is reported by Delfi.
In Central and Eastern Europe, Hungary and Lithuania are at the peak of popularity. According to 1st Move, when identifying the most favorable real estate investments in countries, data such as property tax, rental tax, and total rental income were evaluated. Lithuania was in a good position in this ranking.
The average income tax in Lithuania is 15%. According to Eurostat, in the second quarter of 2024, rental prices increased by 10% compared to 2023. This trend is likely to continue, with prices increasing.
By the way, changes that will affect tenants, landlords, and homeowners in Germany will come into effect in the new year. Therefore, Ukrainians who are living in or planning to move to the country need to be especially vigilant.
Also, house prices in the UK are close to a record high at the end of 2024. Bloomberg reports this, citing data from Nationwide Building Society.
Prices rose by 0,7% month-on-month to an average of £269, just below the record high of £426 set in summer 273.