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Just make it so the dwelling has to be occupied by the owner for 9-10 months a year. Every month it is unoccupied, the owner has to pay the value of a monthly rent as tax multiplied by the number of months it has been unoccupied -->
month 1 = rent x 1 month 2 = rent x 2 month 3 = rent x 3
I think that'll be hard to ignore for most landlords - foreign or not.
How do you confirm whether the property is occupied?
How does the state know which house you occupy / where you live?
They don't. They trust what I tell them.
Great. Would you be willing to declare your primary residence at another dwelling you don't live in just to help out a friend? Do you expect that to be an easy thing to do every month in order to trick the system? Do you think the landlord of the residence you're living in would simply lie down and take a fine if they know you've signed a contract to live there and declare it as your primary residence?
My wife or son or daughter or nephew would certainly be willing to declare my holiday home as their residence. They probably spend some time there anyway.
Again, if they do, they won't be able to declare another home as their primary residence. So, sure, your daughter can declare your holiday home as her primary residence, but then her landlord in Madrid will get in trouble and as we all know: shit rolls downhill. The landlord will pass the fine on to your daughter. And if she is the landlord, good job, she'll have to pay the fine directly.
They do not.
You have to make a rental agreement. Here in India it has to be registered with the government and pay a nominal registration charges. So when filing your taxes you join your lease agreement, which can be verified by the registrar.
That's not really relevant.
The proposition is to tax people who own property but do not reside there in.
My question is how does the Gestapo know where an owner lives.
For example, if my wife and I own our home and have a holiday home by the sea, we would simply say that one of us resides in the holiday home, and it's not practically possible to disprove that.
Brutal, I love it
Occupancy is hard to monitor and easy to fake though. Purchases are impossible to miss and are a single point of enforcement as opposed to an ongoing burden like you’re suggesting. Though I do appreciate the spirit of your plan.
On the surface it seems like a good idea: if the home isn’t going to be your primary residence you pay extra—a lot extra—to curtail a housing shortage caused in part by foreigners buying and inflating.
That said… if the issue there is anything like it is here in the states, the buyers will have more than enough capital to buy anyways and just pass the cost along to tenants… making the problem worse?
See below, the idea is for rent control to take care of that, which is part of the package. Along with the government supposedly planning to build their own company to compete.
If they were able to manage getting this implemented, which is dubious for political reasons, it probably would work, but it'd take at least a few years and there are many ways the increasingly anarchocapitalist conservative forces around it can disrupt it. We'll see. As a model for other places... it's probably a good place to start looking, it just needs a legal framework where you can deploy all of it (rent control, direct government development and rental, fiscal pressure on speculative property purchases). Just one piece alone probably won't do it.
The bigger issue is that it’s quite easy to “hide” that you are foreign. To do so, simply set up a holding in Spain that buys the house on your behalf.
The legislation being proposed also has a bunch of regulation regarding Spanish holdings buying property, including rent price controls. Depending on how you look at it, forcing foreign groups to set up shop domestically and be restricted by that regulation is the entire point of the tax hike.
Spanish media were reporting recently that some existing rental holdings were starting to dump real estate in response to the rent control, at least in Barcelona.
The bigger problem will be whether the legislation package passes in Parliament, where it needs support from conservative regionalists and then gets implemented at the autonomy level (think states, if you're American), which is largely controlled by conservatives.
I'd have assumed that the majority of landlords were EU citizens... then remembered about Brexit.
That'll upset the brexiters, and they'll howl about the mean Spanish government...
I remember back during the Leave Referendum that many Briton pensioners living in Spain voted Leave "To keep the Spaniards from entering 'our' country" and later were very suprised that they themselves were also impacted and had to apply to live in Spain (and apparently after the end of the transition period some even got expelled from Spain because they couldn't be arsed to register and became illegal immigrants).
That is the most Brexit thing I've ever heard. The audacity to complain about the Spanish in your country while the British loudly and palely swarm Spain every summer.
Yeah, I was an EU immigrant in Britain at the time and the Delusions Of Grandeur of the locals were really placed in sharp relief and some of those were pretty shocking. These were especially bad for the Brexiters but for example many Remainers claimed that the UK should "Stay in the EU and shape it from the inside" (so a "we Britons know best than the rest" view, and remember that the Leave Referendum happenned after the UK Government demanded from the EU, once again, even more special treatment and was told "No").
In Britain the mindset that led to Brexit had been heavilly pushed by the Press and Politicians for decades, so this outcome wasn't totally unexpected. In fact I only know about Britons being expelled from Spain after the end of the transition period since they didn't register, because some British newspapers which had supported Brexit published outraged pieces about how Spain was expelling Britons), so even after the whole Brexit thing was done, at least part of the Press still pushed (and Britons still believed) the whole idea that Britons should have special treatment even whilst not reciprocating it.
As I see it Britain and Britons are suffering from one hell of a post-Imperial Hangover, which makes it very problematic for them to cooperate with other nations in any format other than "purelly competitive and always trying to gain an advantage over others", so they were always the odd one out in the EU and, frankly, De Gaule was right when way back he did not want to let the UK into the EU.
post-Imperial Hangover
LOL 100%
Tbf, most of the complaining was about Poles and Romanians.
Mostly because they were the lower income additions to the EU, and the absolute poverty wages being paid in the UK farming and construction industries would have seemed like a fair deal to them.
Oh and this cunt who convinced his empty headed followers that millions of Muslims would be coming here under EU rules from famous EU member, Syria.
I agree with the measures I hope they address companies doing it too as it could be a loophole.
We were thinking about a move to Spain soon and in years to come possibly renting out the home we buy and live in South America to be closer to family.
I imagine in this case , as a non EU resident despite being an EU citizen the tax would apply.
I'd guess so, and that makes sense to limit the people wealthy enough to buy property and not live in Spain
Not saying you're a rich landlord
Can we get this in Washington State please.
Spotted the savvy European investor.
we need this in berlin too
And everywhere else. Along with banning corporate ownership of residential property and banning short term rentals.
Wow, if corpos couldn't own residential property? Could you imagine?? Unlike a lot of ways the world is all wrong, this is such a clear-cut, actionable demand. I love it. It's so simple.
I mean they'd probably find ways to just put the deeds under individuals that are puppets for their corpo-daddies or something, but it'd be such a good impact.
Yeah, we need this.
I hope there is an exemption for people buying houses that they reside in full time. This type of policy is incredibly anti-immigrant otherwise.
Yeah, that's what I thought too. But also it says "resident" so I guess you don't have to be a citizen to buy a house?
Yeah, it would only apply to people from outside the EU that also don't reside in Spain.
Source (in spanish): https://www.eldiario.es/economia/ventajas-fiscales-alquiler-asequible-limites-extranjeros-no-residentes-sistema-publico-garantias-nuevas-medidas-vivienda-gobierno_1_11959199.html
You can rent for some time until you have your residency solved/accepted.
Non-EU residents. Right there in the title. If you are residing in Spain then you are a de facto EU resident.
Ffs.
At some point you wonder, why not just prevent them from owning homes if they're not citizens? Kick em out and tell them to come back when they're EU citizens, problem solved.
At some point you wonder, why not just prevent them from owning homes if they're not citizens?
Money. Foreign investment also appreciates the value of domestic property owners as well. Aka fuck you I got mine syndrome.
Do that there, do that here, Do that everywhere. Better for you and me, From see to sea.