Estate agents are warning that Spain’s proposed property ban and supertax on non-resident non-EU nationals could cause a ‘boomerang effect’ as enquiries soar, the same unintended consequence that the end of the golden visa scheme had.

Realtors in Spain are urging foreigners to ‘buy now’ before Spain’s proposed housing measures come into force to tax, limit or even ban purchases by non-EU, non-residents.

Earlier in January, Spain’s Prime Minister Pedro Sánchez shocked many around the world when he announced that his government was preparing legislation to massively increase the tax burden on non-resident third-country nationals such as Brits and Americans who buy homes in Spain.

This came as part of a raft of measures intended to address Spain’s housing crisis, which has priced out many locals and residents from rents and buying homes. By putting a 100% tax on property purchases for some foreigners, the government hopes to dissuade many from doing so to free up housing for locals. However, a week or so later Sánchez went even further and proposed an outright ban

Both measures have made international headlines, with British and American media in particular paying close attention to the story. However, reports in the Spanish press now suggest that the bold policy proposals may have had an unintended consequence dubbed the ‘boomerang effect’.

The proposed measures have reportedly led to a surge in enquiries from overseas for Spain-based estate agents, who expect the tax and ban plans to drive up demand and sales in the coming months as a pre-emptive reaction.

This follows on from an uptick in golden visas granted after it was announced that the scheme would be scrapped, which was given as one of the reasons to cancel the golden visa in the first place.

Many property experts doubt how likely either proposal is to come to fruition, mainly due to the problems the government currently has getting legislation through Congress, but nonetheless realtors and estate agents are advising clients to buy now just in case.

Foreigners have traditionally been one of the main drivers of the Spanish property market. In the first half of 2024 alone, they made 69,412 transactions and have a market share of 20.4%, according to data from the General Council of Notaries.

However, non-resident, non-EU nationals (the group targeted by the proposals) represent barely 3% of the total number of property sales and purchases in Spain.

If you are looking to buy a property in Spain or Portugal and need a mortgage, email mark@vci-network.com for the latest criteria