Spain imposes “100% tax” on homes bought by foreigners. Will America be next?

Photo above - Pedro Sanchez solves Spain's housing problem with a stroke of his pen.

Sheesh . . . talk about being unfriendly to immigrants. Spain doesn’t want them. Can’t keep them out, but Spain CAN keep them from buying houses. What’s wrong with this idea? (see AP news link below).

This is the brainchild of Spanish Prime Minister Pedro Sanchez (different guy than the one in Napoleon Dynamite). His reasoning, and I quote: “To provide more housing and regulation”.

I’m not sure how PREVENTING people from buying houses causes more construction. This seems to fly in the face of economic theories championed by Keynes, Milton Friedman, Paul Samuelson. And even David Ricardo, though he wasn’t Spanish either.

If Pedro wanted to reduce foreign consumption of houses, he should simply ban migrant entry. But stopping real estate transactions means they will simply arrive anyway, and rent. Think for a moment about this, Pedro. Okay – are we ready to continue?

If any head of state is seriously interested in affordable housing, they would enact policies to make it easier to build homes. There is, in fact, a shortage of homes in Spain. But since 78% of Spanish citizens already own their homes, instead of renting, the “no foreigners allowed” rule seems even more bizarre. On the basis of home ownership, Spain is way ahead of even the USA (65%). Although that US percentage may be declining due to the 12,000+ (and counting) homes burned in Los Angeles over the past week. Los Angeles rental companies are already jacking up prices, of course. Probably sporting goods stores are doing the same on tents.

The problem is, Spain cannot (legally) keep migrants out. If someone takes a plane, train or automobile from any of the 27 EU member nations, they don’t need a passport to arrive. It’s like moving from California to Texas. Just pack the car and go. But Prime Minister Pedro cannot legally keep THOSE folks from buying homes, or cars, or getting jobs either. It’s all allowed by the EU constitution.

So the “foreigners keep out” rule is apparently targeting citizens of the USA, Canada, China, Russia, India, Pakistan . . . who have no legal right to do anything in Spain.

Tip to Pedro . . . if you REALLY sat down and thought about it, you’d do something more creative. Like “tax rebates” for building new homes. Both citizens and new arrivals. Rather than locking down the sale of existing homes.

I’m just sayin’ . . .

Why is Spain considering a 100% tax on homes bought by non-EU buyers? | AP News

BlueVeins · 22-25 Best Comment

Objectively correct opinion. Housing is dirt cheap in Tokyo even though it's like 1000x times denser than Spain. The issue isn't a lack of space, the issue is degenerate homeowner NIMBYs fighting tooth and nail to artificially inflate their property values.

SusanInFlorida · 31-35, F

@BlueVeins best reply of the thread. people want to preserve their ocean views and surrounding green space. that's why apartments, condos, and townhouses are disfavored.

watch what happens in california where 12,000 home just burned to the ground. this is going to be mind blowing.

Burnley123 · 41-45, M

Now, it's fair to say that I'm hardly one who can throw stones when it comes to calling out others talking about the politics of other countries. Call me an obnoxious British blowhard or whatever.

But... you should at least read up a bit before commenting,

Have you (or any of the people who have commented) even read the article that you posted?

Sanchez (yes, he is NOT the guy from Napoleon Dynamite and well done for that) has floated this policy not to reduce immigration but to cut down on foreign landlords buying up Spanish properties and then charging extortionate rents on Spanish citizens.

A lot of these non-EU landlords are residents who are British-born. A lot of affluent Brits move to Spain for the weather and are buying up properties. Sanchez would probably want to apply the same rule to - say - German property buyers too but they are part of the EU and it would be against the EU laws to charge an extra tax on them. Though Britain is no longer an EU member so the Spanish can impose this rule and fair enough.

Sanchez leads a centre-left party as part of a coalition government. The Trumpian party tin Spain is called Vox and they mostly have issues with African and South American immigrants. Due to geography and post-colonial ties respectively, they are much more numerous and (because they are non-white) Vox has an issue with them, To them, the Brits are arrogant alcoholics and ruthless capitalists but they do bring in money, PSOE and Podemos are worried about their hipster voters and their rent hikes.

So this floated move is not about immigration. However, 'closing the border' would hardly work given that Spain is on the Iberian Peninsula and most of its borders are on seas and oceans. Good luck building a wall around that. Economic laws would actually be the only effectively way of cutting down on immigration, even if this policy was about immigration. It isn't.