Spain’s 100% Property Tax Plan Shakes Non-EU Buyers

Spain is pushing toward tighter rules for non-EU property buyers, but those “100% property tax” headlines are misleading. Here’s the clear version of what’s proposed, who it hits, and how to plan your purchase.

What Is Actually Changing?

• In 2025, Spanish lawmakers proposed doubling the transfer tax (ITP) paid by non-EU, non-resident buyers on resale properties.
  
  
• Example: If the current ITP rate is 10% (as in Andalusia and much of Spain), affected buyers would pay 20% of the price in total transfer tax.
  
  
• This is not a tax equal to 100% of the price; it’s a 100% increase in the tax rate (i.e., “double taxation,” not a “100% tax”).

Why Is Spain Doing This?

The stated goal is to cool speculative foreign investment that’s squeezing local buyers in hotspots such as the Costa del Sol, Barcelona and the Balearics. By doubling ITP for non-EU, non-residents, lawmakers hope to deter speculative purchases and ease price pressure for Spanish residents.

Is It Law Yet?

• No — it’s still a proposal under debate.
  
  
• Many legal experts expect court challenges (possible constitutional concerns or conflicts with EU free movement of capital rules).
  
  
• If it passes, it would apply only to non-EU, non-resident buyers of resale property.
  
  
• Off-plan purchases and resident EU/EEA buyers are expected to be exempt.

Other Costs and Legal Details

• Non-resident owners still face IRNR (impuesto sobre la renta de no residentes) on rental or deemed income from vacant property — broadly 19% for EU/EEA and 24% for others.
  
  
• The Golden Visa real-estate route has been abolished; buyers must consider other residency options.
  
  
• Expect tighter due diligence: proof of funds, intended use, and residency evidence are under closer scrutiny.

Legal Uncertainty and Risks

The proposal will likely face judicial review. Spain’s courts and the EU Court of Justice have previously struck down discriminatory tax regimes affecting non-EU buyers. If this measure passes, refund claims and litigation could follow.

Practical Advice

• If you’re already searching, consider completing a purchase before any law takes effect.
  
  
• Hire an independent lawyer to model your tax exposure under multiple scenarios.
  
  
• Track regional differences: places like Andalusia and other hotspots may move fastest on enforcement.

Final Word

Spain is not imposing a tax equal to the full price of your property. The proposal is to double the transfer tax (ITP) for non-EU, non-resident buyers of resale homes (e.g., 20% instead of 10%). It would significantly raise purchase costs, but it’s not confiscatory. This is a fast-moving file, and legal challenges are expected — stay updated.

Related Reading (Internal Links)

• Spanish Mortgages – Can I Get A Mortgage In Spain?
• Capital Gains Tax in Spain
• Spain’s IBI Property Tax Explained: 2025 Rates by Province
• Declaring Property Rental Income in Spain
• Non-Resident Taxes in Spain

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