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.