Spain is planning to impose a 100 per cent tax on real estate for buyers from non-EU countries such as the UK, in a bid to improve affordability in the housing market by deterring foreign purchases. Prime Minister Pedro Sánchez announced the plan for the punitive property tax,

The measure is meant to help tackle the country's housing crisis, the prime minister said.

Late last year, the Bank of Spain estimated that the country would need some 550,000 new residences to be built to meet demand over the next two years.

Housing has become a major issue in Spain as it struggles to balance promoting tourism with high rental and purchase prices

Spain is on the hunt to block Britons from purchasing second homes after announcing a major tax raid. Spanish Prime Minister Pedro Sánchez has today announced 12 new measures to satiate voters frustrated at the lack of affordable housing in the country.