Darren Simons and Sean Woolley discuss Spain's controversial proposed "100% Tax" on Homes Bought by people resident outside the EU.

Some headlines suggest this interpretation, implying that if a property costs €100,000, a non-EU non-resident buyer would pay an additional €100,000 in taxes. This would make buying property prohibitively expensive for non-EU investors.

However, there are other interpretations. The "100% tax" might not be on the full purchase price but rather on specific components, such as the transfer tax, stamp dury or or the annual property tax called IBI.

What is cleae is the announcement by Spain's PM Pedro Sanchez appears designed as a deterrent surcharge on the transaction value, aimed to discourage speculative purchases but not literally doubling the cost.

Sánchez has framed the policy as a measure to combat housing shortages by curbing speculative investments by non-resident buyers. It’s possible that the "100%" figure is symbolic or intended to highlight the government’s strong stance, while the actual policy might involve a high but less extreme rate.

Details Pending: The Spanish government has yet to publish the full mechanics of the proposed tax. Without formal documentation, there is room for misinterpretation.

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