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Money & Taxes

Spain's tax moves may spread to other countries

Spain's new property taxes on foreign buyers are signaling a broader European trend—other countries may follow.

Image: Seasoned Expat

Spain's recent tax increases on foreign property purchases have spooked the European real estate market. The country introduced higher transfer taxes and new levies targeting non-resident buyers, and now other nations are watching closely to see if the model works.

The concern is real: if Spain's approach reduces foreign investment without cratering the market, other countries facing housing shortages may copy it. France, Italy, and Portugal have all discussed similar measures. The logic is straightforward—locals are priced out, so tax the foreigners.

If Spain's approach works, other countries facing housing shortages may copy it within 18 months.

For expats already holding property abroad, this is a watch-and-wait moment. If you're planning to buy in Europe, the window may be narrowing. Countries that haven't yet imposed foreign buyer taxes—Portugal, Italy, and parts of France—could move within the next 18 months. The trend is toward higher friction and cost for non-residents.

What to do: if you're serious about buying in Europe, move before the next wave of restrictions. Talk to a local tax advisor in your target country now, not after you've made an offer. Some countries grandfather in buyers who close before a certain date, so timing matters.

Source: original report ↗

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