Spanish Prime Minister Pedro Sanchez has just proposed imposing a tax of up to 100 per cent on the value of properties bought by non-EU citizensUK expats are being offered incentives to buy homes in some countries – as Spain considers a 100 per cent property tax. Spanish Prime Minister Pedro Sanchez has just proposed imposing a tax of up to 100 per cent on the value of properties bought by non-EU citizens, in a bid to ensure more affordable housing for residents.
Sanchez claimed that housing prices in Europe have risen by 48 per cent in the last 10 years, almost twice as much as household income. He thinks the “unprecedented” measure is necessary to meet the country’s housing emergency.
William Cooper, Marketing Director at William Russell told GB News: “Owning property abroad can be a valuable way to diversify your income, especially if you’re concerned about pension stability.
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“Rental income from properties in desirable locations can provide a steady revenue stream, potentially offsetting fluctuations in pension income. Additionally, property investments can appreciate over time, offering capital gains that can further bolster your financial security.”
He said, in Italy, towns like Zungoli in Campania and Mussomeli in Sicily are offering abandoned properties for just €1 to attract new residents. To qualify, applicants must have lived outside Italy for the past five years, with the scheme allowing them to pay a flat seven per cent tax on all foreign income for up to nine years.
Speaking about Greece, Cooper added: “Greece offers a lump-sum tax of €100,000 per tax year for individuals who become tax residents, regardless of the amount of income earned abroad.”
In Thailand, UK expats can purchase freehold condominiums, provided foreign ownership in a building doesn’t exceed 49 per cent, Mr Cooper added. On Portugal, “Portugal’s Non-Habitual Resident (NHR) scheme offers significant tax benefits, including a flat 10 per cent tax on foreign pension income for ten years.
“Cyprus offers a low flat rate of five per centon pension income and has no inheritance tax, making it attractive for retirees.” He said: “Buying property abroad as a UK expat can seem complicated with unique challenges such as language barriers, exchange rates, and more difficulty getting a mortgage. But it’s pretty straightforward if you know what you’re doing.”