The Impact of Scrapping the 90/180 Days Rule on Spain’s Property Market
If Spain or other European Union countries were to scrap the 90/180 days rule, experts predict a significant surge in demand for Spanish properties. Currently, non-EU citizens and non-Spanish residents are limited to spending a maximum of 180 days a year in Spain. This restriction has undeniably affected the property market, leading to a decrease in interest from potential buyers.
The Economic Argument for Change
Real estate agents and local governments are actively lobbying for the relaxation or elimination of this rule. They argue that the current cap is costing the Spanish economy millions in lost revenue. By allowing longer stays, Spain could attract more foreign investment, particularly in the real estate sector, which is crucial for local economies. The potential influx of buyers could revitalize areas that have been struggling due to the limitations imposed by the rule.
The Post-Brexit Landscape
Since Brexit, the 90-day limit in the Schengen zone has particularly discouraged many non-EU citizens, especially British nationals, from purchasing property in Spain. The uncertainty surrounding travel and residency has led to a notable decline in interest. Experts believe that removing this restriction would immediately release pent-up demand, as many Brits and other non-EU citizens are eager to invest in Spanish real estate. Similar discussions in France regarding property increases highlight how closely tied these rules are to buyer interest.
Regional Variations in Demand
The impact of scrapping the 90/180 days rule would likely be highly localized. The most pronounced boom would occur in popular expat-heavy regions such as the Costa del Sol, Costa Blanca, and the Balearic Islands. These areas have long been favored by foreign buyers for their climate, lifestyle, and amenities. Conversely, inland or less tourist-dependent areas may not experience the same level of interest, as buyers typically gravitate toward well-established expat communities.
Shifting Property Use
If the rule were to be relaxed, many properties currently acting as short-term holiday rentals might transition into extended-stay private second homes. This shift could lead to increased spending in local economies, as homeowners would likely contribute more to local businesses and services. However, it could also exacerbate existing supply pressures for long-term residential rentals in these popular areas, potentially driving up rental prices and making it more challenging for locals to find affordable housing.
A Call to Action
In light of these developments, a petition has been launched calling on the UK government to take action. The petition urges the UK government to negotiate a bilateral agreement with Spain that would allow UK citizens to stay in Spain for longer than 90 days without requiring residency or complex visa applications.
The petition emphasizes that since Brexit, UK citizens have faced restrictions under the Schengen 90/180-day rule, negatively impacting retirees, second-home owners, remote workers, long-stay tourists, and families with ties to Spain. Given that Spain is one of the most popular destinations for British citizens, the petition argues that many contribute significantly to local economies through tourism, property ownership, and spending.
For those interested in supporting this initiative, the petition can be found here.
Conclusion
The potential scrapping of the 90/180 days rule could reshape the landscape of Spain’s property market, offering new opportunities for both buyers and local economies. As discussions continue, the implications of such a change remain a hot topic among real estate professionals, local governments, and prospective buyers alike.
