5% annually is 5% annually. It doesn't compound. 5 out of 100 one year followed by 5 out of 100 the second year is still 5% total. And most of these homes are €500K+, which the average Spaniard is not buying, so there is little to no effect on the everyday citizen.

Yes, Airbnbs are a big problem. But the majority of Spanish Airbnbs are owned by locals. This is nothing but the Spanish government trying to gaslight locals into believing the problem is foreigners, when the reality is they themselves caused the problem.

A 100% tax on foreigners will do nothing but harm the small villages attempting to attract outside investments in order to save their aging-out communities.