Spain is planning to impose a 100 per cent tax on real estate for buyers from non-EU countries such as the UK, in a bid to improve affordability in the housing market by deterring foreign purchases. Prime Minister Pedro Sánchez announced the plan for the punitive property tax,

Spain is set to impose a significant new tax on foreigners, including Brits, buying homes in the country as it moves to prioritise housing availability for locals.

The move came as Sanchez’s Socialist-led government grapples with growing concerns over rising home prices nationwide, particularly in Madrid. It was part of a broader set of measures, including a pledge to provide state-backed guarantees for specific rentals and the transfer of thousands of homes owned by the national bad bank to a newly established housing agency.

Spain wants non-European Union residents to pay as much as 100% tax for home purchases in the country, a move that could affect buyers from the UK and Latin America.

British expats will be forced to pay 100pc tax on their holiday home in Spain under new measures to fix the country’s housing crisis.