Those living in Gibraltar have been dealt a huge blow as Spain’s war on holiday homes is also likely to hit them.
The Spanish Prime Minister, Pedro Sanchez, declared earlier this week that non-resident citizens from countries outside the European Union, including the UK, would be slapped with a hefty tax bill if they wished to purchase property in Spain.
The “unprecedented” proposals intend to discourage nationals from countries outside the European Union from buying on the Costas and other parts of Spain by increasing the amount of taxes they have to pay.
He said: “For non-resident non-EU nationals, the tax burden will be up to 100% of the property’s value.”
Sanchez added: “In 2023 alone, non-residents from outside the EU purchased 27,000 houses and flats, not to live in them because mainly they bought them to speculate, to earn money with them, which is something that in the context of the problems many people are experiencing is something we can’t permit.”
And now Gibraltarians will be angered to hear that they will likely not be exempt from the proposals—even in the event of a new deal.
Gibraltar, a British Overseas Territory, sees 15,000 people cross the border daily for work or leisure.
Negotiations over Gibraltar’s future relationship with the EU have dragged on for over three years, with no agreement in sight.
Real estate agents believe Gibraltar’s locals will now find it increasingly hard to acquire a holiday home in Spain.
Mike Nicholls of Chesterton’s told the Olive Press the proposals would “discourage or even eliminate purchasing in Spain by Gibraltar locals”.
“However, those who own a property in the government housing sector in Gibraltar cannot own a second property anyway, so this new move is unlikely to materially impact the local Gibraltar market.”
It is not all doom and gloom for Gibraltar as holidaymakers who Spain has seemingly shunned may consider Gibraltar as an option, believe Charles Gomez of Charles Gomez & Co.
Monday’s announcement comes after months of anti-mass tourism protests across Spain, highlighting issues like the lack of affordable housing linked to Airbnb-style holiday rentals and empty foreign-owned homes.
A fund will also be established for Spain’s 17 regions and local councils to apply for money to increase inspections of tourist properties, ensuring they are licensed and properly managed.