Spain’s property tax plan could redirect UK home buyers to Cyprus, experts say
Source: in-cyprus.com
British property buyers may shift their investments to countries like Cyprus following Spain’s proposal to impose a 100% tax on property purchases by non-European Union residents, property experts said.
The tax proposal, announced by Spanish Prime Minister Pedro Sanchez as part of measures to address housing pressures, could particularly impact British buyers who view Spain as a retirement destination.
“Many Brits may take the news of heightened property taxes in Spain as a blow considering moving to such a location could well have been a lifelong ambition,” said Toby Leek, president of NAEA Propertymark, adding that buyers would likely look to countries with lower property tax levels.
Legal experts cautioned that the proposal, which comes after non-EU residents bought 27,000 properties in Spain in 2023, faces a lengthy legislative process.
“The legislative process in Spain is tortuously slow and it is perhaps a little early for UK nationals to worry about this proposal,” Seila Sanches Lucas, a lawyer at Broadfield told the Daily Mail.
Alternative destinations for British buyers could include Turkey, Italy, Malta, Cyprus and France, according to Stephen Abletshauser, private client partner at Spencer West LLP, who called the move “a long-term own goal” for Spain.
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