Spain recently announced potential increases to property tax which could negatively affect British and other non-EU citizens, planning to move to the country. The dramatic increase is part of a proposal to address the current housing crisis. Prime Minister, Pedro Sanchez, was quoted as saying that non-EU residents bought 27,000 properties in Spain in 2023, “not to live in” but “to make money from”, and so the overall goal is to provide “more housing, better regulation and greater aid” to Spanish citizens. But how could this affect Cyprus?
Experts suggest that this tax hike could steer buyers to more attractive options such as Greece and Cyprus, where property taxes will be significantly lower than those in Spain should the proposal go ahead.
For those who already own property in Spain, this could mean a price reduction in their property value, which could prompt owners to sell before any potential tax increases are implemented. Donnell, executive director at property website, Zoopla, said, “It is unclear what the proposed tax would be aimed at but it appears to be aimed at investors rather than homeowners.”
Countries such as Cyprus and Greece will most certainly be welcoming the decision in a competitive market, particularly for retirement property purchase.
