The country is at the forefront of a wider crunch spreading across Europe, and its prime minister has proposed a 100 percent tax aimed at foreign real estate investors.

As Spain continues dealing with a nationwide housing crisis, its government has proposed an unconventional fix to the problem — and one that will not please foreigners. Spain has announced plans to implement a 100% tax on homes purchased by non-European Union residents,

Spain is planning to impose a tax of 100% on homes bought by non-EU residents as it looks to tackle an entrenched housing crisis in the country.

To not become a society divided into two classes, the rich landlords and poor tenants,' said Spain's Prime Minister Pedro Sánchez.

Spain is planning a raft of measures to address its brewing housing crisis, including an up to 100% tax on properties that non-European Union residents buy.

Plans to prohibit British nationals and other non-EU citizens from buying second houses in Spain have been revealed by Spanish Prime Minister Pedro Sánchez. The action attempts to stop foreign speculation and lessen the load on Spain’s already troubled housing market in the wake of growing worries over housing affordability in the nation.