MADRID – Spain’s Prime Minister Pedro Sánchez has announced a bold plan to tackle the country’s housing affordability crisis by proposing a ban on non-European Union citizens purchasing property unless they reside in Spain. This initiative aims to curb speculative property investments and ease soaring housing prices.
Sánchez explained his proposal during a Socialist Party gathering in the Extremadura region, highlighting the increasing difficulty many Spaniards face in finding affordable homes. “We are going to propose to ban non-EU foreigners from buying houses in our country, in cases where neither they nor their families reside here and they are just speculating with those homes,” he stated.
The move is part of a broader 12-point program to address the crisis. Other measures include boosting social housing projects, regulating the rental market more tightly, and imposing higher taxes on tourist apartments, which many blame for reducing residential housing availability and driving up rents.
In 2023, non-residents from outside the EU purchased approximately 27,000 homes in Spain, with British buyers leading the trend, accounting for 9.5 percent of all foreign transactions, according to real estate registry data.
Critics of Sánchez’s proposal argue it could deter foreign investment in Spain’s property market, which contributes to the economy. Meanwhile, supporters see it as a necessary step to prioritize local needs over speculative interests.
Sánchez has attributed the crisis to policies implemented by the conservative Popular Party during the financial crisis of 2008, claiming these measures worsened housing affordability for ordinary Spaniards.
The prime minister’s latest proposals have sparked debate across the nation, reflecting growing frustration with housing prices and the challenges faced by renters.
This proposed ban is expected to influence discussions on Spain’s housing market and policy direction as the government seeks to balance local needs with foreign investments.
