It has become known that Spain may increase property tax for non-residents of the European Union by 100%. Financial Times writes about this, citing a source close to the Government of the country. Now the tax rate varies from 7% to 12% of the value of the object, and the Golden Visa programme allows you to obtain a residence permit and citizenship of the country in a simplified manner. This approach has turned into a crisis for the indigenous population, so the Government of Spain and plans to introduce restrictive measures.
Read Also: Home insurance
Why Spain Plans To Increase Property Tax For Non-Residents Of The EU
As stated by the Prime Minister of Spain Pedro Sanchez, the indigenous population of the country cannot even afford to rent housing because of the high cost. Especially acute such a problem is in Barcelona and in Madrid, where people with an average salary cannot rent a home, only a room.
Important. It is not a fact that the Spanish government will be able to adopt this reform, as it is mostly made up of socialists. Most of the seats are held by right-wing parties, which do not approve of such initiatives of the Prime Minister. Representatives of the Partido Popular, which is now in the majority, said that the probability that everything will work out as planned is very low. The property market is difficult to control. Those restrictive laws that have been adopted on the rental of housing to tourists in Barcelona, almost do not work, as there is a desire to circumvent them among those who rent property and to whom they rent it.
Moreover, the incomes of Spaniards will remain at about the same level. As a result, the market will lose buyers, so it will sag. But in Europe there are investors who will be ready to replace the current, so the situation, in general, will not change.
The Spanish authorities have already passed a law tightening the rules of buying property for foreigners: cancelled the Golden Visa programme. The programme is valid until April 2, which caused a rapid increase in sales. So, over the past month, the number of transactions involving foreign capital increased by 20%.
There is an opinion that after the closure of the Golden Visa programme real estate will not become more accessible to Spaniards, as there are other ways of registration of residence permits. And in the case of adoption of the innovation few people will want to pay for housing in 2 times more, so deals will begin to be made with artificial understatement of the amount under the contract. That is, the parties will switch to cash payment, which will negatively affect tax revenues and confidence in the property market in Spain as a whole.
The leader among foreign buyers of property in Spain are British citizens, despite the fact that the country is not a member of the European Union. Following the British in the list of major investors are:
- Germany;
- Morocco;
- Poland;
- Italy.
According to the latest data from the Spanish authorities, over the past year there has been a marked increase in the number of applications for the purchase of housing from citizens of the United States, Mexico and Venezuela.
HTML
<h1>Spain Raises Taxes For Non-Residents</h1>
<p> </p>
<div class=”modal-body”>
<div class=”cplm-post”>
<p><span lang=”EN-US”>It has become known that Spain may increase property tax for non-residents of the European Union by 100%. Financial Times writes about this, citing a source close to the Government of the country. Now the tax rate varies from 7% to 12% of the value of the object, and the Golden Visa programme allows you to obtain a residence permit and citizenship of the country in a simplified manner. This approach has turned into a crisis for the indigenous population, so the Government of Spain and plans to introduce restrictive measures.</span></p>
<h2><span lang=”EN-US”>Why Spain Plans To Increase Property Tax For Non-Residents Of The EU</span></h2>
<p><span lang=”EN-US”>As stated by the Prime Minister of Spain Pedro Sanchez, the indigenous population of the country cannot even afford to rent housing because of the high cost. Especially acute such a problem is in Barcelona and in Madrid, where people with an average salary cannot rent a home, only a room.</span></p>
<p><span lang=”EN-US”>Important. It is not a fact that the Spanish government will be able to adopt this reform, as it is mostly made up of socialists. Most of the seats are held by right-wing parties, which do not approve of such initiatives of the Prime Minister. Representatives of the Partido Popular, which is now in the majority, said that the probability that everything will work out as planned is very low. The property market is difficult to control. Those restrictive laws that have been adopted on the rental of housing to tourists in Barcelona, almost do not work, as there is a desire to circumvent them among those who rent property and to whom they rent it.</span></p>
<p><span lang=”EN-US”>Moreover, the incomes of Spaniards will remain at about the same level. As a result, the market will lose buyers, so it will sag. But in Europe there are investors who will be ready to replace the current, so the situation, in general, will not change.</span></p>
<p><span lang=”EN-US”>The Spanish authorities have already passed a law tightening the rules of buying property for foreigners: cancelled the Golden Visa programme. The programme is valid until April 2, which caused a rapid increase in sales. So, over the past month, the number of transactions involving foreign capital increased by 20%.</span></p>
<p><span lang=”EN-US”>There is an opinion that after the closure of the Golden Visa programme real estate will not become more accessible to Spaniards, as there are other ways of registration of residence permits. And in the case of adoption of the innovation few people will want to pay for housing in 2 times more, so deals will begin to be made with artificial understatement of the amount under the contract. That is, the parties will switch to cash payment, which will negatively affect tax revenues and confidence in the property market in Spain as a whole.</span></p>
<p><span lang=”EN-US”>The leader among foreign buyers of </span><a href=”https://globalriel.estate/countries/spain”><span lang=”EN-US”>property in Spain</span></a><span lang=”EN-US”> are British citizens, despite the fact that the country is not a member of the European Union. Following the British in the list of major investors are:</span></p>
<ul>
<li>Germany;</li>
<li>Morocco;</li>
<li>Poland;</li>
<li>Italy.</li>
</ul>
<p><span lang=”EN-US”>According to the latest data from the Spanish authorities, over the past year there has been a marked increase in the number of applications for the purchase of housing from citizens of the United States, Mexico and Venezuela.</span></p>
</div>
</div>
