Spain will regret its 100 per cent expat property tax

They drive up prices. Rents go through the roof. And the locals can no longer afford a home. The Spanish Prime Minister Pedro Sanchez is so fed up with wealthy expats inflating the property market he is planning a 100 per cent tax on anyone from outside the EU buying a home in Spain. Of course, that might prove popular in the short term – but Spain will pay a high price for slamming the door shut on well-off foreigners. 

Any who dreamt of buying a small place on the Costa del Sol or in the hills of Catalonia can probably forget about it. Very soon they will face a 100 per cent additional tax, a rate of effective stamp duty that even Rachel Reeves might consider a bit steep. Since it can’t be recouped when you sell the property, it will effectively close the Spanish market to foreigners.