Spain versus France: where foreign buyers can still purchase holiday homes without punitive taxes

France imposes additional taxes on second homes of up to 60 per cent, British county councils have doubled property taxes, and Wales could raise them by as much as 300 per cent. Spain, meanwhile, remains committed to an open-door policy.

Pedro Sánchez made a high-profile announcement of plans to introduce a tax of up to 100 per cent on purchases by non-resident foreigners. The proposal sounded alarming, but stalled in parliament and nothing has changed in practice. The Balearic and Canary Islands have also made much noise about restrictions on foreign buyers—but these remain rhetorical. No actual bans exist.

The political atmosphere in Spain is certainly heating up. A housing crisis is a genuine problem, and foreign buyers make a convenient target for politicians. Tensions are particularly high in the Balearics, Canaries, Málaga, Alicante and Barcelona. Yet Spain remains considerably more welcoming to foreigners than its neighbours.

Source: Spanish Property Insight