Latest news with #non-EuropeanUnion
Daily Record
4 days ago
- Business
- Daily Record
New Spain '100 per cent tax' rule change could hammer Brits
The Spanish government, led by Prime Minister Pedro Sanchez, is looking to implement new rules that could affect Brits UK residents could face a 100 per cent tax increase if new legislation is approved in Spain. The government is reportedly pushing for a 100 per cent tax on property purchases by non-European Union (EU) residents in the Mediterranean nation, as reported by Bloomberg. Given that the UK is no longer part of the EU, this means people from England, Scotland, Wales, and Northern Ireland could all be affected. Spain has long been a favourite holiday spot, with a record-breaking 94 million tourists visiting in 2024 alone, making it the most-visited country that year. Of these, 18.4 million were Brits. Spain is also a popular choice for UK expats, with nearly 300,000 currently living there permanently - although that is slightly down from the peak of 316,000 in 2013. The influx of both tourists and foreign residents has led to a surge in housing costs. Approximately 20 per cent of property purchases in Spain are made by foreigners, with Brits leading the pack, reports Bristol Live. Consequently, the proposed tax could have a significant impact on them. However, it's understood that the tax will not affect non-EU professionals or business people working in Spain. What are the Spanish government's '100 per cent' plans? Introduced to parliament last Thursday (May 22), the legislation aims to promote 'measures that enable access to housing, since we are facing one of the largest problems our society is currently confronted with', according to Prime Minister Pedro Sanchez. He further noted that non-EU residents purchased 27,000 properties in 2023, and he hopes the bill will eventually address the growing frustration over soaring property prices, particularly in popular areas like Madrid and Barcelona. The bill also proposes an increase in value added tax on short-term rentals, a hike in taxes on publicly-listed real estate investment trusts, and a levy on unoccupied houses. The plans come after a backlash against holiday rentals, with Barcelona planning to prohibit all short-term rentals by 2029. Earlier this month, the Spanish government demanded the removal of nearly 66,000 property listings from rental platform Airbnb, arguing that they violate regulations for tourist accommodation.
Business Times
25-05-2025
- Business
- Business Times
Spain considers new 21% VAT on short-tourism rentals, double the hotel rate
[MADRID] The Spanish government is seeking parliamentary approval for a new 21 per cent value added tax (VAT) on short-term tourism rentals – double the tax paid for hotel rooms – as it seeks to address a housing crisis. The maximum tax rate would apply to all rentals under 30 days and affect around a third of the 94 million annual visitors to Spain last year who opted to rent a home over a hotel room. At present, there is no VAT on short-term rentals in mainland Spain, while hotel visitors pay a 10 per cent tax on rooms. The measure is contained in a wider bill that the minority, Socialist-led government may struggle to get through a deeply polarised parliament. 'Homes are for living in (...) the measures seek to guarantee the right to rental housing for families,' Housing Minister Isabel Rodriguez said on Friday (May 23) about the bill's unveiling. Spain is trying to balance maintaining tourism as its economic engine while addressing popular concern over high housing costs as landlords opt for more lucrative tourist rentals. A Bank of Spain report last week said that the country has a deficit of 450,000 homes. Half the housing stock in the Canary and Balearic islands is either tourist accommodation or homes owned by non-residents, it said. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up Apartur, an association of tourism apartment owners in Spain's second city Barcelona, argues that shorter-term rentals should pay the same VAT as hotels and calls the proposed 21 per cent VAT rate discriminatory. The bill under consideration also includes a controversial measure first announced in January to tax non-European Union citizens up to 100 per cent on property purchases unless it will be their primary home, as well as increasing taxes payable by owners of empty properties, including second homes. 'The sole objective is to put an end to these activities and leave (tourism) in the hands of hoteliers,' said Javier Penate, legal adviser to a holiday homeowners association in the Canary Islands, where short-term rentals already pay 7 per cent VAT, as do hotels. Local and regional authorities are also capping new licences for tourist rentals in Malaga and Madrid, while banning them entirely in Barcelona by 2028. REUTERS
Yahoo
23-05-2025
- Business
- Yahoo
A record number of Americans applied for UK citizenship as Trump began his second term
A record number of Americans applied for British citizenship between January and March, according to the first set of data covering the start of Donald Trump's second presidential term. Some 1,931 Americans put in an application, the most since records began in 2004 and a jump of 12% on the previous quarter, figures from the UK Home Office showed Thursday. Applications had already soared during the October-December period, which coincided with Trump's re-election. Successful applications by US citizens to settle permanently in the United Kingdom, rather than just move there initially, also hit a record high last year, the latest period for which official data is available. Settlement comes with the right to live, work and study in Britain indefinitely and can be used to apply for citizenship. More than 5,500 Americans were granted settled status in 2024, a fifth more than in 2023. The last time American applications for British citizenship spiked was in 2020, during Trump's first presidential term and at the height of the Covid-19 pandemic. Other data also showed that in the first six months of 2020 more than 5,800 Americans gave up their citizenship, nearly triple the number from all of 2019. The statistics were compiled by Bambridge Accountants, a firm with offices in New York and London specializing in cross-border taxation. 'These are mainly people who already left the US and just decided they've had enough of everything,' Alistair Bambridge, a partner at Bambridge Accountants, told CNN in August 2020. Many people who renounced their citizenship complained of being unhappy with the political climate in the United States at the time and how the pandemic was being handled, but another reason for their decision was often taxes, he said. While many Americans are looking to build a life in the UK and elsewhere in Europe, that's becoming more difficult. Britain's Prime Minister Keir Starmer said last week that the government would toughen requirements for legal migrants and extend the wait for newcomers to claim citizenship. And earlier this week, Italy enacted a law that removes the route to citizenship through great-grandparents. The country had already tightened visa rules for non-European Union citizens. CNN's Alaa Elassar, Barbie Latza Nadeau and Rob Picheta contributed reporting.
Business Times
23-05-2025
- Business
- Business Times
Spain pushes ahead with plan to tax non-EU home buyers 100%
[MADRID] Spain's government is pushing ahead with a controversial proposal to hit non-European Union residents with a 100 per cent tax when buying homes, as it seeks to tackle a brewing housing crisis. Prime Minister Pedro Sanchez's Socialist party presented the plan as part of a broader housing Bill submitted to Parliament on Thursday (May 22). The Bill seeks to promote 'measures that enable access to housing, since we are facing one of the largest problems our society is currently confronted with,' according to a copy of the draft legislation seen by Bloomberg. Sanchez first announced plans to create the new tax in January, in an attempt to address growing discontent over surging real estate prices and housing shortages in areas including Madrid and Barcelona. At the time, Sanchez said foreigners were snapping up homes and speculating on price increases, and that non-EU residents bought 27,000 properties in 2023. UK citizens are the biggest foreign buyers of Spanish property, mainly in coastal regions such as Valencia, Andalusia and the Balearic Islands. Germans, Dutch and other EU citizens will be exempt. It's far from certain that the Bill will be approved in Parliament, as Sanchez has struggled to pass legislation since he formed his current government in 2023. The premier leads a minority coalition and needs support from about eight parties whenever he wants to get laws through – something he doesn't always achieve. To fight the housing shortage, the central and local administrations are also clamping down on holiday rentals, with Barcelona aiming to ban all short-term rentals by 2029. Sanchez's government is also seeking to create a private-public scheme to build homes through industrial systems, that make construction both faster and cheaper than traditional brick-and-mortar building. BLOOMBERG
Irish Independent
23-05-2025
- Business
- Irish Independent
Spain to go ahead with controversial 100pc tax on foreign house buyers
©Bloomberg Today at 21:30 Spain's government is pushing ahead with a controversial proposal to hit non-European Union residents with a 100pc tax when buying homes, as it seeks to tackle a brewing housing crisis. Prime minister Pedro Sanchez's Socialist party presented the plan as part of a broader housing bill submitted to parliament yesterday. Register for free to read this story Register and create a profile to get access to our free stories. You'll also unlock more free stories each week.
