The Spanish government has unveiled a package of new measures aimed at regulating the real estate market and increasing the supply of affordable housing, with a focus on limiting property purchases by non-resident foreigners, including Moroccans and Arabs, who represent a significant segment of investors in the Spanish real estate market.
According to the government, between 25,000 and 30,000 properties are purchased annually by non-resident foreigners, which exerts pressure on the market and leads to rising prices. To mitigate this impact, authorities are considering two options: first, imposing new taxes on foreigners purchasing properties; and second, tightening existing taxes to raise the cost of these transactions, particularly in areas suffering from high housing pressure.
Measures to Enhance Affordable Rental Housing
Alongside the restrictions on foreign purchases, the government announced plans to support affordable rental housing by offering tax exemptions of up to 100% on income tax for landlords who reduce rental prices, even in areas not classified as “tense.” This policy aims to increase the supply of competitively priced housing while providing special incentives for small landlords with fewer than ten properties.
Amendments to Major Real Estate Companies’ Tax Benefits
As part of the package of measures, the government decided to restrict tax benefits enjoyed by large real estate companies (Socimis) that do not contribute to providing affordable rental housing. This decision follows criticism directed at these companies for primarily investing in commercial centers, offices, and hotels while allocating a very small percentage of their investments to the housing market.
Strengthening Public Housing
The government confirmed that it will transfer approximately 30,000 housing units from “Sareb” to public ownership by 2026, in a move aimed at increasing the supply of social housing. It also pledged to ensure that state-funded social housing remains publicly owned even when sold.
Facilitations for Youth
In an effort to assist young people in obtaining housing, the government announced that it would act as a guarantor for mortgage loans provided to this demographic. Official sources indicate that this program is based on the French model and aims to support young individuals facing difficulties in securing financing due to limited financial resources.
Reactions and Expected Impacts
These policies are expected to generate widespread debate, particularly among the Moroccan and Arab communities that are among the most active in purchasing properties in Spain, especially in coastal areas such as Andalusia and Valencia. The government’s goal with these measures is to curb real estate speculation and ensure housing availability at prices suitable for local residents.
It is worth noting that the Spanish government seeks to implement these measures alongside European policies aimed at regulating the tourist property market and reducing pressure on the local market. Additional details regarding these policies are expected to be announced in the near future.