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It will always boil down to real estate ownership, squeezing and extracting the last available cash with rents. The taxation has to proactively prevent it. Once
by lifestyleguru 2mo ago
It will always boil down to real estate ownership, squeezing and extracting the last available cash with rents. The taxation has to proactively prevent it. Once you allow non-residents to purchase, even if they have local passport, the prices go instantly to the moon.
- bluecalm 2mo agoIt wouldn't be a problem if the tax burden was on property owners. If someone purchasing 500k EUR apartment had to pay even 2% of real value of it every year to local community they would be welcome with open arms. Unfortunately right now it's not the locals nor the local infrastructure that capture the benefits. If Spain (and most of the EU) had saner regulations then who knows, maybe they would even allow for building more in places people want to spend time in.
- vladvasiliu 2mo agoThe issue with this approach is that long-time locals will see the market price of their homes rise with the newcomers'. So if you base the tax on that market value, the locals have it very rough.
- bluecalm 2mo agoYou can lower taxes on labor or structure land/property value tax in a way that it offsets your income tax. This way people who live and work in the area pay once. Someone who pays their other taxes somewhere else but buys property pays twice. You just need to align incentives and make it so people who benefits the most pay the most taxes. Preferably proportionally to how much they benefit from the whole arrangement.
- deleted 2mo ago[deleted]