Unrest in Marbella over the new tax for foreigners: “It does not solve the problem of access to housing”

Like a new jug of cold water. This is how the Central Government’s announcement of the new package of housing measures that contemplates, among other actions, the intention to impose a new tax on property purchases by non-resident non-EU foreigners. And the real estate sector, especially the luxury segment, has become the main industry in this area of ​​the province of Malaga in which it is located. Marbellaone of the main residential destinations in the world.

The measure, justified as an attempt to alleviate the housing access crisis that the country is going through and that also affects this area of ​​the Malaga coast, has been described by Javier Nieto, CEO of Pure Living Properties and member of the Association of Entrepreneurs for High Quality Housing DOM3, as “hardly relevant”.

A growing sector

“It will not solve the problem of access to housing and, furthermore, it could negatively affect the image of Spain as a residential destination,” says Nieto. The luxury sector fears that this type of decision will scare away international investors and generate uncertainty in a market that Last year it grew by 20% with a total investment volume that exceeded 3,200 euros in the golden triangle (Marbella, Estepona and Benahavís).

According to recent data, in 2024 non-EU foreigners acquired approximately 27,000 properties in Spainwith a notable percentage concentrated on the coasts of Malaga and Alicante. “These acquisitions generally correspond to properties with prices much higher than averagewhich makes it clear that they do not compete with housing intended for the local population that is experiencing difficulties in accessing a home,” explains Nieto.

He luxury residential marketfocused on exclusive villas and apartments in prime locations, has historically attracted buyers from countries such as the United Kingdom, Germany, France and the Nordic countries and in recent years other markets such as USAArab Emirates and Eastern European countries like Poland. By 2025, it is expected thatTransactions in this segment will grow by around 15%driven by growing international demand and large projects in development.

The CEO of Pure Living Properties, a leading luxury real estate agency in Marbella, also highlights that, to address the housing crisis, structural measures are necessary instead of taxing foreign investors. “This sector understands that if working families do not have access to decent housing, the entire social and economic fabric is affected. Solving this problem is vital, and the solutions must involve structural measuresnot by taxing foreign investments that are not the cause of the problem.”

International reactions

The impact of this announcement has not been limited to the national level. The news has become one of the most read in media such as Financial Timesone of the main headers of the United Kingdom, the largest market in the high-quality housing sector on the Costa del Sol that would be affected by this measure.

“Spain is known for being a welcoming and safe destination for those looking for quality residences. Implementing taxes that seem aimed at deterring foreign buyers damages our reputation and creates uncertainty in a sector that, historically, has contributed significantly to the country’s economy,” says Nieto.

A position shared by the majority of businessmen in the sector is that of reach out when trying to find a solution really effective to the problem of access to housing, which does not pass the increase in tax policies. “We are open to contributing our experience and helping to find real solutions, because a healthy real estate market It is beneficial for everyone, from local families to large investors or foreigners who decide to invest in a second home, contributing to the economic growth of the Costa del Sol,” comments the DOM3 member.

The suppression of the Golden Visa

The Government’s intention to increase up to 100% the tax levy that non-EU foreigners must pay when buying a house adds to the imminent elimination of the Golden Visa, which will stop being granted in April. These golden visas allow foreigners from outside the EU to obtain the temporary residence permit if they make a real estate investment equal to or greater than 500,000 euros or a significant capital contribution in debt, funds, shares or deposits.

Since the Government announced the elimination of these golden visas in April 2023, international investors have requested and received 573 permits. The figure increases to 780 between the months of January and October. Regarding the origin of the investors, they come from more than 40 countries, including China, Venezuela, Argentina, the United Kingdom, Ukraine, Serbia, Turkey, Algeria, Mauritania, Syria and Iran.

“The removal of this measure It’s not going to solve the problems in access to housing that stressed areas such as the Costa del Sol and Malaga capital are suffering and with which at DOM3 we are very aware. This is where the efforts of the Central Government should focus, in guarantee decent housing at affordable prices for the population and not in punishing a sector that generates quality employment and wealth in an area that until very recently depended exclusively on sun and beach tourism,” commented Charly Simon, president of DOM3.

These measures are also receiving criticism from the academic fieldwhere they also consider that they should be more aimed at facilitating access to decent housing for citizens who find it difficult to do so. In this sense, Javier Cuervo, professor of housing innovation at UNIE University recalled that in 2021, “the president promised to build 184,000 public housing units to expand the social housing stock that has not been built. “This non-compliance shows a great difference between intention and action, leaving thousands of families without solutions.”

In his words “Much of Government measures are oriented towards greater market intervention. In Catalonia, for example, limits have been established on the rental price and greater guarantees have been given to tenants. Since 2023, the supply of rental homes in Catalonia has fallen by 20% and prices have increased, which contradicts the objective of the law and makes access to housing difficult.”

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