Spain Proposes Restrictions on Non-EU Nationals Buying Property

Spanish Prime Minister Pedro Sánchez has proposed banning non-EU citizens from purchasing property in Spain unless they or their families reside in the country. According to Sánchez, the measure is designed to combat the housing crisis exacerbated by speculation in the real estate market.

In 2023, non-EU nationals purchased approximately 23,000 homes and apartments in Spain, according to Schengen.News. Sánchez believes that this activity places undue pressure on the housing market, making homes less affordable for local residents.

Earlier in January, Sánchez announced plans to introduce a tax of up to 100% on property purchases by non-EU nationals. The proposed tax aims to curb speculation and ensure housing affordability for Spanish citizens.

"The West faces a critical challenge: to avoid becoming a society divided into two classes — wealthy landowners and impoverished tenants," Sánchez stated.

As part of the government’s efforts, Spain is terminating its Golden Visa program, which allowed non-EU citizens to obtain residency by investing at least €500,000 in real estate. While the program attracted affluent international buyers, it also contributed to rising property prices and market speculation, according to government officials.

The decision to end the program was approved by Spain’s Congress of Deputies in December 2024 and officially published in the Official State Gazette (BOE) on January 3, 2025. Non-EU nationals can still apply for the program until April 3, 2025.

Housing Minister Isabel Rodríguez emphasized that ending the Golden Visa program is a crucial step toward reducing market pressures and increasing housing availability for Spanish citizens.

Restricting property purchases by non-EU nationals and ending the Golden Visa program may lead to a decline in demand for high-end real estate. This could temporarily slow price growth in regions popular with foreign buyers, such as Costa del Sol, Barcelona, and Madrid.

However, critics argue that these measures may harm Spain’s investment appeal, especially among foreign investors viewing property as an asset. The long-term impact remains uncertain and will depend on the government’s ability to stimulate domestic demand and ensure housing market stability.