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.

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.