Spain's Housing Crisis: Controversial Tax Proposal Sparks Debate

Spanish Prime Minister Pedro Sanchez's government has proposed a controversial property tax on non-EU residents as part of efforts to tackle a national housing crisis. Critics label the measure 'xenophobic', while supporters argue it's necessary to augment housing availability and address high rent issues.

Spanish Prime Minister Pedro Sanchez faces backlash over a proposed tax targeting property purchases by non-European Union residents, with opposition leaders branding it 'xenophobic.' Regions governed by the People's Party have vowed not to implement the levy.

Sanchez's administration contends the measure will alleviate Spain's housing shortage, driven by rising rents and inadequate affordable homes. The plan involves a significant tax hike for non-EU homebuyers, echoing strategies used in Denmark and Canada.

The Property Transfer Tax increase, reportedly affecting around 26,000 properties, requires parliamentary approval and regional execution. Critics question its efficacy, as foreign buyers represent just a small percentage of the market, but Housing Minister Isabel Rodriguez insists it will expand housing access.

(With inputs from agencies.)