Inside Spain: Catalonia backs ban on foreign residents buying homes
Property For Members
In this week's Inside Spain we look at how the Catalan Parliament has voted in favour of preventing temporary residents who've lived in the country for under five years from buying homes.
Restrictions on foreign property ownership appear to be at the forefront of national and regional political agendas in Spain currently.
Most recently, we've had Pedro Sánchez's ruling party push forward with the idea of a new 100 percent tax which would double the property price for non-residents of the EU.
But there are those who want to take it one step further and restrict actual foreign residents in Spain from buying homes.
The plenary session of the Catalan Parliament on Thursday supported a motion by separatist party the Republican Left (ERC) calling on the government to limit the purchase of temporary residents to "curb speculation."
ERC is the party which already tried to get the Spanish Congress to do this, but the proposal was rejected. Now they're attempting to do the same but just in Catalonia, where 45 percent of 25 to 40-year-old residents are foreign born.
The legal text specifies that only foreigners who have "permanent residency" - those who have officially resided in Spain for five years - should be able to purchase a property, and that they would to prove this residency period first to the region's housing department before being able to buy.
The premise for this is that there has to be limits for property purchases from overseas which aren't for 'habitual and permanent residence'.
The initiative received the approval of the Catalan Socialists-Units parliamentary group and ERC, Comuns and CUP, while right-wing parties Junts, PP, Vox and Aliança Catalana rejected it.
A similar left-right political divide has been seen on a national level vis-à-vis the 100 percent property tax. At one point, far-right party Vox referred to such proposals as 'xenophobic'.
The Catalan Parliament's green-lighted document also stipulates that a supplementary tax could be introduced on the transfer of real estate to non-EU residents, in line with what Spain's ruling Socialists have proposed, although it's unclear if this would be exactly the same.
Furthermore, a "differentiated regime" could be established for legal entities from other EU states wishing to acquire a property for commercial use.
The Catalan Parliament has also approved a restriction on foreign investment in real estate development if for commercial purposes.
Interestingly, what was rejected was a proposal to reduce the Property Transfer Tax (ITP) on the purchase of a first home for residents.
Crucially, even though the Catalan Parliament has voted in favour of this motion, it remains a declaration of intent with no immediate effect.
In other words, foreigners - regardless of their nationality or residency - can continue to buy properties in Catalonia as this is not a law that's in force.
What the motion and vote does require is that Spain's Prime Minister Pedro Sánchez and the Catalan leader, Socialist Salvador Illa, take action to create a 'legal framework' to make these limits on foreign property ownership a reality.
Whether this actually occurs will remain to be seen, subject as well to the possibility that such measures may contravene EU legislation on the free movement of capital from within and outside of the bloc.
What does seem to be clear is that hardly a week goes by in Spain currently without a new proposal from a political party or a region hard hit by the housing crisis - usually those with large foreign populations as well - suggesting foreigners should be limited from buying Spanish property.
As with every war of attrition, it may just be that one side caves in eventually, and that some legislation affecting foreign home ownership in Spain does pass.
People doubted the cancellation of the golden visa scheme - which gave Spanish residency to non-EU nationals who bought property worth €500,000 - would ever happen. But after a year of legal rigmarole, the residency scheme for wealthy foreigners did get scrapped.
See Also
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Local Spain
18 hours ago
- Local Spain
Inside Spain: Catalonia backs ban on foreign residents buying homes
Property For Members In this week's Inside Spain we look at how the Catalan Parliament has voted in favour of preventing temporary residents who've lived in the country for under five years from buying homes. Restrictions on foreign property ownership appear to be at the forefront of national and regional political agendas in Spain currently. Most recently, we've had Pedro Sánchez's ruling party push forward with the idea of a new 100 percent tax which would double the property price for non-residents of the EU. But there are those who want to take it one step further and restrict actual foreign residents in Spain from buying homes. The plenary session of the Catalan Parliament on Thursday supported a motion by separatist party the Republican Left (ERC) calling on the government to limit the purchase of temporary residents to "curb speculation." ERC is the party which already tried to get the Spanish Congress to do this, but the proposal was rejected. Now they're attempting to do the same but just in Catalonia, where 45 percent of 25 to 40-year-old residents are foreign born. The legal text specifies that only foreigners who have "permanent residency" - those who have officially resided in Spain for five years - should be able to purchase a property, and that they would to prove this residency period first to the region's housing department before being able to buy. The premise for this is that there has to be limits for property purchases from overseas which aren't for 'habitual and permanent residence'. The initiative received the approval of the Catalan Socialists-Units parliamentary group and ERC, Comuns and CUP, while right-wing parties Junts, PP, Vox and Aliança Catalana rejected it. A similar left-right political divide has been seen on a national level vis-à-vis the 100 percent property tax. At one point, far-right party Vox referred to such proposals as 'xenophobic'. The Catalan Parliament's green-lighted document also stipulates that a supplementary tax could be introduced on the transfer of real estate to non-EU residents, in line with what Spain's ruling Socialists have proposed, although it's unclear if this would be exactly the same. Furthermore, a "differentiated regime" could be established for legal entities from other EU states wishing to acquire a property for commercial use. The Catalan Parliament has also approved a restriction on foreign investment in real estate development if for commercial purposes. Interestingly, what was rejected was a proposal to reduce the Property Transfer Tax (ITP) on the purchase of a first home for residents. Crucially, even though the Catalan Parliament has voted in favour of this motion, it remains a declaration of intent with no immediate effect. In other words, foreigners - regardless of their nationality or residency - can continue to buy properties in Catalonia as this is not a law that's in force. What the motion and vote does require is that Spain's Prime Minister Pedro Sánchez and the Catalan leader, Socialist Salvador Illa, take action to create a 'legal framework' to make these limits on foreign property ownership a reality. Whether this actually occurs will remain to be seen, subject as well to the possibility that such measures may contravene EU legislation on the free movement of capital from within and outside of the bloc. What does seem to be clear is that hardly a week goes by in Spain currently without a new proposal from a political party or a region hard hit by the housing crisis - usually those with large foreign populations as well - suggesting foreigners should be limited from buying Spanish property. As with every war of attrition, it may just be that one side caves in eventually, and that some legislation affecting foreign home ownership in Spain does pass. People doubted the cancellation of the golden visa scheme - which gave Spanish residency to non-EU nationals who bought property worth €500,000 - would ever happen. But after a year of legal rigmarole, the residency scheme for wealthy foreigners did get scrapped. See Also
Local Spain
2 days ago
- Local Spain
Passenger compensation for flight delays set to decrease in Europe
Airline passengers in the EU enjoy the world's most generous system of compensation if their flight is delayed or cancelled. However these rights seem set to decrease after the European Council agreed to an overhaul of compensation rules, following intense lobbying from the airline industry. The agreement to extend delay times and cut compensation levels was made at a European Council summit, despite opposition from Germany and Spain. Controversially, the Council bypassed discussions with the European Parliament and made its decision legally binding using a process that has not been deployed in more than a decade. However the European Parliament can still make changes to the new rules - it has four months to respond with a proposal that must be backed by a majority of 361 MEPs. So what changes? The ruling doesn't scrap all the customer protections, but it changes the rules on compensation payments - changing both the payment amounts and the delay time after which compensation rules kick in. Under current EU Air Passenger Rights Regulation rules, passengers can claim between €250 and €600 in compensation if a flight is delayed by at least three hours, if the delay is the fault of the airline. Under the agreed changes, compensation will only be due after a four-hour delay for flights of less than 3,500 kilometres. For longer flights, airlines would be obliged to pay compensation if flights land at least six hours late, compared to the current three-hour standard. Under the new rules, €300 compensation will apply for delays of more than four hours – while €500 will be payable for delays of more than six hours involving flights of more than 3,500km. In exchange for the higher delay thresholds, airlines will have to streamline the complex and obfuscatory compensation process - in which many airlines make it very complicated to claim financial compensation but very easy to claim airline vouchers. There is also a strengthening of the rights for passengers with a disability. And what doesn't change? Other compensation rules remain unchanged, especially around the 'extraordinary circumstances' definition which covers whether airlines have to provide any compensation at all. Compensation for delays or cancellations is not paid if the problem is due to 'extraordinary circumstances' – the exact definition of this in the legislation is vague but it generally applies to situations like extreme weather, political instability, security risks or problems with air traffic control. Strikes are usually not considered to be extraordinary circumstances, neither are routine mechanical problems or staff shortages. The rules cover airlines that are registered in the EU – such as the Ireland-based Ryanair – or flights taking off from an EU or Schengen zone country. Since Brexit the rules no longer apply to the UK, but the British government has mostly "copied and pasted" it into UK legislation. Also unchanged are rules on flight cancellations and airlines responsibility to provide food, accommodation and alternative travel for passengers whose flights are delayed or cancelled. In truth this is not well policed - passengers are often simply told to make their own arrangements for accommodation and alternative travel and submit compensation claims to the airline later. Airlines do, however, routinely provide refreshments, usually in the form of food vouchers to passengers whose flights are delayed. Why the change? In a word - lobbying. Airlines had argued that the compensation payments were too high, especially for budget airlines where the compensation may be higher than the cost of the ticket. Airlines also said that they were unable to provide a replacement aircraft and crew within three hours in many European locations, and that this can lead to additional flights being cancelled because high compensation payments have already been incurred. When does this happen? The change is not immediate, first the European Parliament has four months to stage any objections and if no objection is received, then an introduction date will be set.
Local Spain
2 days ago
- Local Spain
EXPLAINED: Spain's new residency option for family members of Spaniards
Immigration For Members Spain's new Immigration Law has opened up a new residency route for non-EU family members of Spaniards. Here are the rights it grants, who can apply, the requirements and more. The reform, which was wide ranging and encompassed changes in everything to the status of foreign students and the job-seeker visas to cutting waiting times for undocumented migrants to regularise their situation. But now foreigners who are related to a Spanish national can access the so-called 'Temporary Residence for Relatives of Spaniards', or a utorización de residencia temporal de familiares de personas con nacionalidad española to give it its full name in Spanish. What is it? Essentially this new procedure provides residency authorisation and regularisation for family members of Spanish citizens who are not themselves nationals from either the European Union, the European Economic Area or Switzerland. In practice it's quite similar to the pre-existing Tarjeta de Familiar de Comunitario (Residency permit of Family Member of EU national) on a European level, but with important new features that broaden access, residency rights and guarantee greater legal certainty for family members. Who can apply for it? As you might expect, there are several requirements to qualify for this residency authorisation. Those who live with the Spanish national and are in at least one of the following situations can apply: Spouse over 18 years of age. Registered partners. Unregistered partners, but with a proven stable relationship (at least 12 continuous months or with shared children). Children under 26 years of age (raised from 21). First-degree ascendants of the Spanish citizen or his/her spouse/partner if they are dependents. Parents or guardians of a Spanish minor, if they live together or are up to date with parental obligations. Relatives up to the second degree who care for a Spanish citizen with recognised dependency. Children of Spaniards by origin. What documents are needed to apply? You'll need solid documentary evidence to back up your application, including: From the Spanish relative: Copy of DNI or passport Declaration that another spouse or partner does not reside in Spain From the foreign relative: Valid passport Proof of the family relationship Proof of being a dependent (if applicable) For couples: proof of cohabitation and common offspring if applicable What residency rights does it grant? The Temporary Residence for Relatives of Spaniards provides non-EU nationals with several benefits. According to España Abogados: The right to reside and work as an employee or self-employed person throughout Spain Initial residency rights of 5 years (or less, if the Spaniard's period of residence is less) Possibility of renewal for another 5 years if all requirements are met Allows subsequent family regrouping If both the Spanish citizen and the foreigner are outside Spain, a visa must be applied for at the Spanish Consulate in the foreigner's country of residence. This Spanish family member visa will allow entry into Spain, where residence can be formalised at a later date. If both are already in Spain, the residency application must be submitted to the Foreigners' Office. See Also
