Spain Seeks to Curb Short-Term Rentals Amid Growing Housing Crisis
Published On Jan 23, 2025, 12:01 AM
The Spanish government is implementing measures to tackle a severe housing crisis, which include proposing a 100 percent tax on foreign real estate investments and possibly banning foreign purchases altogether. This is amid rising housing costs across Europe, where rents and house prices have significantly increased, linked to the influence of short-term rental platforms and limited housing construction. These actions by Spain’s government reflect growing public discontent regarding affordability in major cities.
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The implementation of a 100% tax on foreign real estate purchases could deter foreign investments, possibly leading to a slowdown in the real estate sector in Spain. As the government takes measures to regulate short-term rentals, this sector may also experience challenges, affecting companies reliant on tourism and hospitality. Overall, these developments could negatively impact real estate market sentiment and prices in the short to medium term.
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