Spanish Prime Minister Pedro Sanchez said he would propose to ban purchasers from outside the European Union from buying properties, as the government seeks to curb rising housing prices, which have become an increasing source of friction.

Spanish Prime Minister Pedro Sanchez plans to restrict property purchases by non-EU buyers as a measure to regulate housing prices. The proposal includes potential bans and tax increases on foreign acquisitions to combat speculation.

Spain is planning a raft of measures to address its brewing housing crisis, including an up to 100% tax on properties bought by people who are neither citizens nor residents of the European Union.

PRIME Minister Pedro Sanchez has announced plans for tax increases on tourist flat rentals and restrictions on non-EU residents buying a home in Spain.

Spain’s government will seek to limit the number of houses sold to foreigners by significantly raising the taxes they pay.

Following the success of the socialist party's proposal last week to slap a tax of up to 100 percent on non-EU property purchases.

Spanish Prime Minister Pedro Sanchez will propose a ban on people from outside the European Union buying homes in the country, part of a broader attempt to confront a housing shortage.