Pressure on Spain’s housing market has been exacerbated by overtourism and the proliferation of short-term holiday rentals.

From Euronews, Spain is planning to introduce a 100 per cent tax on properties bought by non-EU residents in its latest move to protect the housing market from foreign buyers.

Spanish Prime Minister Pedro Sanchez said the “unprecedented” new tax was needed to solve the country’s housing crisis. In recent years, rents have skyrocketed in Airbnb-dominated cities like Barcelona and Madrid and people’s incomes have failed to keep up.

The new tax won’t make it impossible for non-EU residents to buy homes but will likely mean it isn’t financially viable for many considering purchasing a property in the country. Sánchez also didn’t provide a timeline or details on how he plans to implement the tax.