Seems very poorly thought out and not really addressing the root cause of the problem, but will obviously appease the socialist government in the eyes of younger socialists in Spain. One consequence is Brits will form a secondary market to buy and sell Spanish property below market value, with cash under the table away from Spain.
That is a very common trick that we have been doing for generations, buy the house at one price on paper and the rest, up to the market price, in a case in cash. There is a value called "valor catastral" in Spain, and that is supposed to be the fair value of the house, based on location, land properties, and market value. If you are either the seller or the buyer and there are movements of thousands in any of your cash accounts after either buying or selling a property, there is a clear sign that there has been an agreement that has not been registered. If those movements exceed the "valor catastral" greatly you'll have to explain where is that money coming from. The problem is for the seller, which is the one paying income tax. The trick of getting cash under the table has worked for years, but it doesn't anymore with SEPA transactions. It is very easy for a government to ask for any movement in your bank account after selling a property. It might work for small amounts under 5K, but on top of that, you are in for a fine. You might be lucky and get away with it, but it is not a common trick anymore.
This is an article about it. In Spain, paying under the table is called "pagar en negro". Hopefully, the translator does a good job with the translation of the article. https://www.fotocasa.es/fotocasa-life/compraventa/que-puede-pasar-si-compro-una-vivienda-en-negro/
Of my experience of real estate in Spain, it's a real shit show. Unheard of in the US, in Spain you don't have to divulge any issues with a property for sale, from structural damages to modifications or even building rights. So it's a free for all where the buyer has to spend a fortune to clear every possible scam before commiting to a purchase. In addition, the legal system is so slow that it can take years to resolve issues in court, like a tenant who decides to not pay rent. It's very common to hear neighbors threaten to sue each other, but it rarely happens because of the time lag to be heard, sometimes well over 2 years. Of course this doesn't address a couple other things, like having to pay 24% of rental income to the tax man or the fact that as a foreign resident (living there 180+ days) you have to pay taxes on the value of all foreign incomes and assets.
If you hate it that much, why don't you sell it and go to another country, you would be happier somewhere else. It seems to be a bit dumb to complain that much and still own a property there.
I don't think you can compare any European country with the actual shit show that is the US, but if you prefer it, there it is for you. We have the US as an example of how not to run a country. But if you think that is best for you, all you have to do is to stay in the US. Sell your properties and stick the money to the SP500. I wouldn't go there even if I was paid to live in the country, but that is me. Maybe you are right, but I don't see it that way.
Lol, first I don't live in the US. Second, you are squirting the point... Did I say anything wrong about the traps of buying a property in Spain? The government spent decades enticing anyone to buy properties in the country, and they have. Now Catalans are being Catalans, complaining about tourists and Spaniards so the government reverses their politics and within 24 months all rules are changed. Do I hope for a collapse of tourism and the real estate market? I sure do, even if my property value goes to shit. I'll still be there in 10 years to spend 6 months a year and enjoying my sea views.
Yes, I'm aware, and agree. Spaniards are not affected by the proposed legislation, which targets sale of property to non-EU foreigners - mainly Brits I guess. My point relates to a British vendor selling to a British buyer...
Nationalities don't really matter, they will get applied a different tax rate, but as per anything else, they will be treated as if they were Spanish. It is because they have to go through a notary, which is the solicitor for the transaction. They will run all checks automatically. They are required to do so. You also will need a NIE, which is the national ID for foreigners and that will be linked to a bank account. Regardless of your nationality at the moment of the transaction, you will be as if you were Spanish. Something else might be the process through limited companies, I am not aware of that way, but I guess that the government has also looked at that.