Week in Insights: Spain’s Property Play Is a Blunt Tax Instrument

Spain recently proposed a 100% tax on properties purchased by non-European Union residents to resolve a housing crunch—the tax policy equivalent to aiming a bazooka at a mosquito. Taxing short-term rental income or levying additional taxes on vacant properties would be better solutions.

Although the proposal seeks to address the housing crisis, the measure unfairly imposes the tax on buyers based on their residence status rather than their intentions for the property.

The policy ignores the key question of whether a property is being used as a vacation home, investment, or residence. Non-EU retirees, seasonal workers, and individuals contributing to the ...