DOM3 warns about the impact of the announcement of new taxes on non-EU property buyers: "An unnecessary blow to Spain's reputation"

The concern within the high-end housing sector following the central government's announcement of its intention to increase taxes on non-EU foreigners purchasing property in Spain by up to 100% has been the focal point of DOM3's first General Assembly of Members. During the meeting, the association reviewed the actions undertaken in 2024 and set priorities for the new financial year.

An unnecessary blow to the country's reputation that does not solve the housing access problem." That is the stance of the business association. The president, Charly Simon, has also been clear in his assessment, explaining that "it is a measure that is unlikely to go ahead, but the damage to Spain's image as an investment destination has already been done. Announcing something like this without a solid foundation has raised concerns among foreign buyers and within the industry, affecting confidence in our market."

In this debate, Alex Petrov from Solvilla confirmed that many clients were alarmed upon hearing the news, although the uncertainty quickly dissipated when the sector clarified that it was merely an announcement. "Some buyers have expedited the signing process to avoid a potential tax change, which has boosted certain transactions, but these kinds of announcements create unnecessary instability," he stated.

Similarly, Christopher Clover from Panorama Properties also commented that the announcement had accelerated some sales processes due to the uncertainty of a possible tax increase and lamented that it undermines both Spain’s integrity and its reputation as a country open to foreign investment. "It is an absurd measure and a disgrace to the country," he added.

Beyond this debate, the DOM3 General Assembly served to assess the association’s work throughout 2024, a year in which it strengthened its relationship with local administrations, highlighting the collaboration between the private sector and the municipalities of the Golden Triangle (Marbella, Estepona, and Benahavís). Over the past year, the association held meetings with municipal representatives to address infrastructure improvements, sustainable growth, and the need for balanced urban development.

 Charly Simon emphasized the importance of this ongoing dialogue: "Our commitment is not only to excellence in high-end housing but also to improving the environment in which we operate. Marbella, Estepona, and Benahavís must maintain their appeal not only through the quality of their properties but also through the quality of their infrastructure and services."

 Another key point discussed during the assembly was the need to continue driving improvements in the destination. "Marbella cannot aspire to be Europe's top destination without proportional investment in infrastructure. We have a privileged environment, but there are also visible issues that affect the experience of both residents and investors," commented some of the members. The association for high-end housing entrepreneurs has reiterated the need to establish concrete plans to enhance essential services such as road maintenance, security, and sustainability.

The meeting also addressed other key priorities for 2025, such as promoting affordable housing, strengthening preventive measures against drought, and fostering high-quality tourism. DOM3 will continue working with administrations to present proposals and ensure that the Golden Triangle remains an international benchmark in the high-end housing sector.

The assembly concluded with an optimistic message from Charly Simon: "2025 will be a year of challenges, but also of opportunities. As an association, we will continue to lead the sector, promote innovation, and defend the interests of our members and the market as a whole."