Brits could be slapped with 100% tax on Spanish holiday homes amid housing crackdown
27 May 2025, 10:07
British holidaymakers could be hit with an 100 per cent tax on their Spanish holiday homes as part of plans to improve the country's housing crisis.
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The Spanish government have proposed a new bill that could charge non-EU residents, including Brits, to be charged double for Spanish properties.
The bill proposes "measures that enable access to housing, since we are facing one of the largest problems our society is currently confronted with", according to draft legislation seen by Bloomberg,
Britons are currently the biggest buyers of Spanish property, after locals.
8.2 per cent of all Spanish property purchases were made by Brits, with non-EU citizens buying up 27,000 homes in 2023 alone.
This comes as Spain’s government has ordered Airbnb to block more than 65,000 holiday listings on its platform for having violated rules, and hundreds of thousands of Spaniards marched against the housing crisis, fuelled by a tourism boom.
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If passed, the bill would not apply to British businessmen, but it could impose VAT hikes on short-term rentals, introduce penalties on empty homes and increase taxes on publicly listed real estate trusts.
It is unclear whether socialist prime minister Pedro Sánchez can get the law through parliament. He faced signifiant opposition forming the current government in 2023.
Luis de la Matta, spokesman for the centre-right Partido Popular, said his party would not back “a xenophobic measure”.
Last week, Spain ordered Airbnb to remove more than 65,935 listings it claimed the app violated existing rules, with property owners failing to include their licence number.
An Airbnb spokesperson said: “Airbnb will continue to appeal all decisions that affect this case, which is at odds with Spanish and European rules.
The spokesperson added that the Ministry of Consumer affairs "is not competent in enforcing short-term rental regulations" has "failed" to provide an evidence-based list of non compliance accommodations, "using an indiscriminate methodology".
The statement continued: "They have also deliberately ignored the resolution by the Spanish Supreme Court that has made clear not all supply on Airbnb needs a registration number."
Consumer rights minister Pablo Bustinduy said, via the Standard: "No more excuses. Enough with protecting those who make a business out of the right to housing in our country."
In November 2024, 321,000 homes were listed as holiday rentals in Spain, a 15 per cent increase since 2020
Thousands took to the streets to protest against mass tourism in the Canary Islands in May.
Protestors called for authorities to limit the number of visitors to the islands to limit soaring housing costs, traffic congestion and strained services.
Demonstrators took to the streets in all of the main islands and in several cities in mainland Spain.
Some signs read "Canaries have a limit" and "stop the destruction of my territory".
More than 1 million foreign tourists visit the Canary Islands each month - overwhelming the population of around 2.2 million.
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