No. Spain’s proposed tax of 100% on property bought by non-EU buyers is not law. The Prime Minister announced it in January 2025, a draft bill went to Congress in June 2025, and by the latest sources I found it had not been debated or passed. A Reuters report of 27 March 2026 said it had stalled, and the government’s January 2026 housing package left it out. Non-EU buyers today pay the ordinary transfer taxes. This page separates what was proposed from what is law, and explains what to do while it is pending. I did not find any newer report than those from May and June 2026, so check the Congress records and the official gazette (BOE) before you rely on it.
What was proposed?
On 13 January 2025, Prime Minister Pedro Sánchez presented twelve housing proposals, one of which was a tax on non-EU buyers, justified by saying that they buy to speculate. According to a law firm’s summary of the draft:
- Who: an individual who is neither an EU/EEA national nor a Spanish tax resident.
- What: residential property in Spain, with a charge equal to 100% of the taxable base on top of the existing transfer taxes.
- Resales and new builds: the draft is described as covering resale homes, while new builds bought from developers, which pay VAT, were reportedly outside it.
- Territory: the Basque Country and Navarre, which have their own tax regimes, were reportedly excluded.
- Exemptions: EU/EEA nationals and non-EU nationals already resident in Spain.
- Companies: the treatment of Spanish companies owned by non-EU investors was uncertain and would depend on the final text.
Because the text could still change, treat these details as the proposal, not as rules.
What would it cost, if it passed as described?
On a resale home of €250,000, a charge equal to 100% of the base would add €250,000 (≈ £211,000 / $280,000) to the usual taxes, doubling the cost of the transaction. For comparison, the ordinary resale tax (ITP) at 7% in Andalucía is €17,500. This is an illustration of the proposal as reported, not an expected outcome.
Conversions are approximate and use the European Central Bank reference rates of 14 October 2026 (€1 = £0.844 = $1.120). Rates move every day.
What is the timeline?
| Date | Event |
|---|---|
| 13 January 2025 | Prime Minister announces the proposal among twelve housing measures |
| 3 April 2025 | Golden visa for property investment ends (separate measure); see why the golden visa ended |
| June 2025 | Draft bill with the charge submitted to Congress |
| January 2026 | New housing package presented without the charge |
| 27 March 2026 | Reuters: no readings, committee scrutiny or plenary debate after about 15 months |
| May 2026 | A PSOE counter-proposal refers to a tax on non-resident foreign buyers without a rate; a government source says the charge will continue to be pursued |
| June 2026 | One law-firm article still reports no debate and no passage |
Why has it stalled?
The governing coalition is a minority and needs support from smaller parties. Reports name the Catalan party Junts as opposed, arguing that the housing shortage is a supply problem, while Podemos is reported to prefer a full ban on non-resident purchases. The next general election is due by August 2027, so the timing is uncertain. These are reports of political positions, not a forecast.
What are the legal doubts?
- EU law: article 63 of the Treaty on the Functioning of the EU limits restrictions on capital movements, including with non-EU countries, and article 64 allows only limited exceptions for direct investment. Critics question whether a charge based on nationality fits.
- The Spanish Constitution: a charge that depends on nationality and residence rather than on the value of the transaction raises questions under the principles of equality (article 14) and economic capacity (article 31). A new tax must also be created by a law of Parliament (article 133).
- Testing: none of these questions has been decided by a court, because no law has passed.
What do non-EU buyers pay today?
Non-EU buyers pay the same transfer taxes as everyone else: ITP on resales at a rate set by the region, or VAT and stamp duty on new builds. Our ITP vs VAT vs stamp duty guide and the buying costs guide give the rates, and the cost calculator models your case. Yearly taxes for non-resident owners are in the non-resident property tax guide.
What should you do while it is pending?
- Do not rush a purchase because of the headline, and do not assume it is dead either. Neither is a reason to skip the legal checks.
- Ask your lawyer whether your contract can protect you if a new tax applies before the deed. The rules on timing and transitional provisions would be in the law, and none exists yet.
- Check your residency status, since the draft exempts Spanish tax residents and EU/EEA nationals.
- Follow the 12-step buying guide and use an independent lawyer.
- Check the official sources for news before you sign.
What are the common mistakes?
- Repeating the headline as if it were law.
- Assuming the proposal applies to buyers who are EU citizens or Spanish residents.
- Making a purchase decision from a single news story.
- Ignoring the other policy risks, such as the status of tourist lets; see holiday rental rules.
How is it different from the taxes that already exist?
Today’s taxes on non-residents are linked to the transaction or to the ownership of the property: the transfer tax when you buy, the yearly non-resident tax on the property and, if you let it, tax on the rent. The proposal would add a charge based on who the buyer is. That is why it has been controversial, and why lawyers question how it would fit with EU law.
How should you read news about the proposal?
- Check the date. Several pages that rank in search results repeat the January 2025 announcement as if it were new.
- Look for the stage: announced, filed, debated in committee, voted in plenary, published in the BOE. Only the last makes it law.
- Check whether the story cites parliamentary records or only earlier articles.
- Separate this proposal from others: the end of the golden visa, the annulled tourist-let registry and regional rules on holiday lets are different measures.
What about buying through a company?
The treatment of Spanish companies owned by non-EU investors is described as uncertain, since it would depend on the final wording and any anti-avoidance rules. Do not set up a company only to avoid a tax that has not passed; a company has its own taxes, costs and obligations. Ask a Spanish tax lawyer to compare the two options for your case.
What other policy risks should buyers watch?
For buyers who plan to let their home, the rules for holiday lets are more likely to affect the return than this proposal; see Spain holiday rental rules. For buyers who hope to live in Spain, the non-lucrative visa has an income test, explained in the visa guide. And for buyers deciding between countries, see Spain vs Portugal buying costs.
A simple rule for readers
Until a law is published in the BOE, treat the 100% charge as a risk to monitor, not as a cost to plan for. Update your budget only when the text, the rate, the date it takes effect and the exceptions are known.
How current is this page?
The newest reports I found date from May and June 2026. I searched again on 16 October 2026 and found nothing newer, but a missing report is not proof that nothing changed, so check the Congress records and the BOE.
Frequently asked questions
Is the 100% tax on non-EU buyers in force?
No. It is a proposal that was submitted to Congress in 2025 and, in the latest sources I found, had not been debated or approved.
Who would it apply to?
As reported, individuals who are neither EU/EEA nationals nor Spanish tax residents buying residential property, with exemptions for residents.
Do British, American or Canadian buyers pay it today?
No. Non-EU buyers pay the ordinary transfer taxes. See our guides for British, American and Canadian buyers.
Could it be challenged in court?
Critics raise EU-law and constitutional questions, but nothing has been litigated because no law has passed.
Where can I check the current status?
The Congress records and the BOE show whether the bill has moved. Your lawyer can also confirm.
This is general information, not legal or tax advice. Rules and rates change, and your situation may differ. Confirm the figures with the tax authority and a qualified lawyer or tax adviser before you commit. Facts last checked on 16 October 2026.
Sources
Official sources (check these for the current rule):
Also cross-checked against published guides, because practice varies between notaries, registries and banks:
