IRISH passport holders in Northern Ireland hoping to buy property in Spain could still be subject to a major tax increase.
Spanish Prime Minister Pedro Sánchez has announced his intention to introduce a tax of up to 100% on the value of properties bought by non-residents from non-EU countries including the UK.
He said the “unprecedented” move was needed to tackle Spain’s housing crisis.
Speaking in Madrid, Mr Sánchez said that non-EU residents bought 27,000 properties in Spain in 2023, “not to live in” but “to make money from them.”
No further details were offered on how the scheme would work, and other Spanish political parties have already voiced their opposition to the plan.
The Spanish government has been asked for clarification on whether this would also apply to EU citizens who are residents in the UK, such as Irish passport holders in Northern Ireland.
Mr Mr Sánchez indicated the tax would apply to non-EU residents, which would include Irish passport holders living in Northern Ireland, but estate agents dealing with expats believe the law may not come into effect.
Harry Stallwood, a sales manager with forsalebysallyinspain.com, said: “It is a concern, but my gut feeling is that the Spanish government will not pass that bill.
“At the moment they’re only talking about it. Since Brexit we have seen a decline in the British market every single year.
“What we’ve also seen is that whatever the British haven’t bought, those properties are being soaked up by Dutch and German buyers within the EU.”
While admitting the announcement was “a big shock,” he added: “I think the Spanish government would be foolish to do something like that, considering how much they make on holiday homes.
“I believe it’s going to be on a passport basis. So if someone had an Irish passport, I don’t think it would apply to them.
“You’d be surprised, the amount of clients from London we have coming over to Spain with the poshest British accents. It would make you chuckle.”
Gary Smith, a manager with the UK-based Ethoscasas company, said: “The Irish passport is the end of most peoples’ problems when it comes to Europe, and I think including this one.
“There’s also been a huge influx of American buyers recently, especially at the higher end of the market.
“I think post-budget, there’s been talks of lots of British millionaires trying to buy in Spain.
“So I think this is basically aimed at those non-EU, high net worth investors.”
Agreeing it was “very unlikely” to pass, he noted that Spanish regions already had different tax rates.
“I don’t think the regions will like it, they don’t particularly like the national government anyway.
“Other parties are already saying there’s no way they’re going to allow this, and it’s not a strong government at the best of times.”
He also argued that Brexit had not proven as much of a barrier for UK buyers in Spain as initially feared.
“We do an easiest place to retire index. Once you have a certain income and no criminal record, it’s still very easy to retire to Spain.”