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

HootyTheNightOwl

Per my understanding.

Spain is currently very attractive to British retirees, who want to have a second home there so that they have somewhere nice and warmer to go in the winter while staying with family in Britain in the summer and renting out the villa when they are not staying/vacationing there themselves.

Now, if I were a Spaniard, looking to move away from home... I'd be annoyed, too. My fellow countrymen shouldn't be emigrating abroad to buy a property that they're only going to live in for half a year, then charge stupid amounts for foreigners to rent per week the other half of the year - especially not when they're complaining about "immigrants moving in and taking all our houses" at home.

They'd be the first to complain if wealthy Spaniards moved to England and did the exact same thing that they are doing in Spain. Further to that, over tourism is becoming an issue in Spain, too so the Prime Minister is looking to discourage even more Brits from going there this Summer. Stemming the number of expats owning property out there is one way of doing that and making more available to Spanish citizens looking to upgrade and get cheaper properties moving into the possession of younger Spaniards looking to leave home for the first time.