UK residents planning to buy a holiday home in Spain have been warned they could be hit with a 100% tax rise as the country tries to tackle its housing shortage.
Public anger is growing in Spain and other European countries as locals are being priced out of home ownership by rents driven up by gentrification and landlords shifting to more lucrative, short-term tourist rentals, especially in urban and coastal areas.
Spain’s Prime Minister Pedro Sanchez told an event on affordable housing on Monday the West faced a challenge – “to not become a society divided into two classes, the rich landlords and the poor tenants”.
Property prices had increased by 48% in the past decade in Europe, he added.
Spain has long been a popular destination for holiday home buyers trying to move permanently to a sunnier climate, especially among those from the UK, looking to buy properties in places such as Ibiza, Marbella and Barcelona.
Its popularity has helped to push up Spanish property values over many years.
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People from outside the EU, including the post-Brexit UK, bought 27,000 houses a year in Spain, Mr Sanchez said.
El Pais reported that Spain’s Executive intends to limit the purchase of housing by non-resident non-EU citizens by increasing the tax levy they must pay when buying a house to 100%.
It was not exactly clear how the tax would be levied but the Financial Times reported that Spain’s housing ministry said the new measure would be introduced by modifying stamp duty or via a special tax.
His comments came amid a raft of measures designed to tackle to what El Pais reported him as saying was “one of the main challenges of European and Spanish societies: access to housing”.
It included proposals to change the tax regulations around tourist accommodation.
In an attack on people who bought property to speculate and in doing so reduced the supply of homes for people to live in, in some areas, he said: “They didn’t do it to live in them, they didn’t do it for their families to have a place to live, they did it to speculate, to make money from them, which we – in the context of shortage that we are in – obviously cannot allow.”
Mr Sanchez said that holiday rentals should pay tax “like a business”, as “it isn’t fair that those who have three, four or five apartments as short-term rentals pay less tax than hotels or workers”.
In the third quarter of 2024, non-Spaniards including EU citizens bought 24,700 properties in Spain, accounting for 15% of all real estate purchases in the country, the Financial Times said, citing data from Spain’s Association of Registrars.
The largest group of non-Spanish buyers were those from the UK, who made up 8.5% of buyers.
The chances of the proposal becoming law are limited because Mr Sanchez faces a constant struggle to earn the votes he needs to reach a majority in Spain’s divided parliament.
A Royal Navy patrol ship has intercepted two Russian vessels off the UK coast, the Ministry of Defence has said.
It comes after Defence Secretary John Healey announced last Wednesday that lasers from Russian spy ship the Yantar were directed at RAF pilots tracking it, in an attempt to disrupt the monitoring.
The MoD said on Sunday that in a “round-the-clock shadowing operation”, the Royal Navy ship HMS Severn has intercepted Russian warship RFN Stoikiy and tanker Yelnya off the UK coast in the past fortnight.
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Russian ship ‘directed lasers at our pilots’
The Russian vessels sailed through the Dover Strait and westward through the English Channel, the MoD said.
HMS Severn later handed over monitoring duties to a NATO ally off the coast of Brittany, France, it said, but continued to watch from a distance and remained ready to respond to any unexpected activity.
The ministry added that the UK’s armed forces are on patrol “from the English Channel to the High North” amid increased Russian activity threatening UK waters.
At a news conference in Downing Street on Wednesday, Mr Healey said the spy ship was on the edge of British waters north of Scotland, having entered wider UK waters over the last few weeks.
He said it was the second time this year the Yantar had been deployed off the UK coast and he claimed it was “designed for gathering intelligence and mapping our undersea cables”.
Image: HMS Severn tracking of Russian corvette RFN Stoikiy and tanker Yelnya off the UK coast. Pic: MoD
Mr Healey said the ship had “directed lasers” at pilots of a P-8 surveillance aircraft monitoring its activities – a Russian action he deemed “deeply dangerous”.
In a clear message to Russian President Vladimir Putin, the defence secretary said: “We see you. We know what you are doing. And we are ready.”
The ministry said while tracking the Yantar, Royal Navy frigate HMS Somerset and other civilian ships in the area “experienced GPS jamming in a further demonstration of unprofessional behaviour, intended to be disruptive and a nuisance”.
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What is Russian spy ship up to?
Russia’s UK embassy dismissed the accusations and insisted the Yantar is a research ship in international waters.
The defence secretary also repeated government plans to increase defence spending and work with NATO allies to bolster European security.
And he stressed how plans to buy weapons and build arms factories will create jobs and economic growth.
Image: HMS Somerset flanking Russian ship the Yantar near UK waters on 22 January 2025. File pic: Royal Navy/PA
A report by a group of MPs, also released on Wednesday, underlined the scale of the challenge the UK faces.
It accused the government of lacking a national plan to defend itself from attack.
The Defence Select Committee also warned that Mr Healey, the prime minister and the rest of the cabinet are moving at a “glacial” pace to fix the issue and are failing to launch a “national conversation on defence and security” – something Sir Keir Starmer had promised last year.
Image: Russian ship the Yantar transiting through the English Channel. File pic: MoD
The UK has seen a 30% increase in Russian vessels threatening UK waters in the past two years, according to the MoD.
But the ministry maintained the UK has a wide range of military options at its disposal to keep UK waters safe.
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Three RAF P-8 Poseidon aircraft have deployed to Keflavik Air Base in Iceland in the largest overseas deployment of the RAF P-8 fleet so far, the MoD said.
They are conducting surveillance operations as part of NATO’s collective defence, patrolling for Russian ships and submarines in the North Atlantic and Arctic.
The operations come just weeks after HMS Duncan tracked the movements of Russian destroyer Vice Admiral Kulakov, and frigate HMS Iron Duke was dispatched to monitor Russian Kilo-class submarine Novorossiysk.
West Midlands Police has defended the ban on Maccabi Tel Aviv fans attending an Aston Villa match after it was claimed that false intelligence was used.
Supporters of the Israeli club were barred from the Europa League fixture at Villa Park on 6 November.
West Midlands Police chief superintendent Tom Joyce told Sky News before the game that a “section” of Maccabi’s fanbase engaged in “quite significant levels of hooliganism”.
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‘Hooliganism’ blamed for Maccabi Tel Aviv ban
According to The Sunday Times, West Midlands Police claimed in a confidential dossier that when Maccabi played Ajax in Amsterdam last year, Israeli fans threw “innocent members of the public into the river”, and added that between 500 and 600 supporters had “intentionally targeted Muslim communities”.
The report also said 5,000 Dutch police officers had been deployed in response.
However, the Netherlands’ national police force has questioned the claims, reportedly describing information cited by its British officers as “not true” and in some instances obviously inaccurate.
Sebastiaan Meijer, a spokesman for the Amsterdam division, told The Sunday Times that he was “surprised” by allegations in the West Midlands Police report, which had linked 200 travelling supporters to the Israel Defence Forces (IDF).
Mr Meijer denied that his force had such intelligence, adding that the claim was meaningless given the country had a policy of conscription.
Also, Mr Meijer said that Amsterdam’s force “does not recognise” the claim in the British report, attributed to Dutch law enforcement, that Israelis were “highly organised, skilled fighters with a serious desire and will to fight with police and opposing groups”.
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Heavy police presence for Aston Villa v Maccabi Tel Aviv
The Dutch police added that the only known case of a fan being in the river appeared to involve a Maccabi supporter. While being filmed, he was told he could leave the water on the condition that he said “Free Palestine”.
In an interview with Sky News before the game, West Midlands Police referenced disorder when Maccabi played Ajax in Amsterdam last November.
Mr Joyce said ahead of the Villa Park match: “We’ve had examples where a section of Maccabi fans were targeting people not involved in football matches, and certainly we had an incident in Amsterdam last year which has informed some of our decision-making.
“So it is exclusively a decision we made on the basis of the behaviour of a sub-section of Maccabi fans, but all the reaction that could occur obviously formed part of that as well.”
Image: Pro-Israel supporters are led away from Villa Park before a Europa League tie on 6 November. Pic: PA
Maccabi’s visit to Birmingham came amid heightened tensions due to Israel’s war on Hamas in Gaza.
A safety advisory group (SAG) recommended that Maccabi fans should be banned from attending the fixture on the advice of the police. The ban drew criticism, and Prime Minister Sir Keir Starmer said it was the “wrong decision”.
Image: Mounted police outside Villa Park for the game. Pic: PA
West Midland Police’s statement in full
Following The Sunday Times report, West Midlands Police stood by its “information and intelligence”, adding that the “Maccabi Fanatics… posed a credible threat to safety”.
In a statement to Sky News, the force said: “West Midlands Police’s evaluation was based primarily on information and intelligence and had public safety at its heart.
“We assessed the fixture between Ajax and Maccabi Tel Aviv in Amsterdam as having involved significant public disorder.
“We met with Dutch police on 1 October, where information relating to that 2024 fixture was shared with us.
“Informed by information and intelligence, we concluded that Maccabi Tel Aviv supporters – specifically the subgroup known as the Maccabi Fanatics – posed a credible threat to public safety.
“The submission made to the SAG safety advisory group was based on information and intelligence which helped shape understanding of the risks.
“West Midlands Police commissioned a peer review, which was conducted by UKFPU [United Kingdom Policing Unit], the NPCC [National Police Chiefs’ Council] and subject matter experts.
“This review, carried out on 20 October, fully endorsed the force’s approach and decision-making.
“We are satisfied that the policing strategy and operational plan was effective, proportionate, and maintained the city’s reputation as a safe and welcoming place for everyone.”
The watch, which had remained in the couple’s family, was sold at Henry Aldridge & Son Auctioneers in Devizes, Wiltshire.
The £1.78m for the item is the highest amount ever paid for Titanic memorabilia, according to the company.
A letter written by Mrs Straus on Titanic stationery and posted while onboard the ship fetched £100,000.
The previous record was set last year when another gold pocket watch presented to the captain of a boat that rescued over 700 passengers from the liner sold for £1.56m.