Spain’s proposed 100% property tax for non-EU non-resident buyers has created concern among international buyers. However, the most important point is simple:
This tax is not currently in force.
Foreign buyers can still buy property in Spain under the existing tax rules. The proposal should be monitored, but it should not be treated as a current buying cost.
Last reviewed: 27 June 2026
Important: this article is general information only. It is not legal, tax or financial advice. Buyers should confirm their situation with a Spanish tax adviser before making a purchase decision.
Quick Summary
- Spain’s proposed 100% tax for non-EU non-resident buyers is not currently in force.
- Foreign buyers can still buy property in Spain under the existing tax rules.
- The proposal should be monitored, but it should not be treated as a current buying cost.
- Buyers should confirm their residence status and purchase taxes with a Spanish tax adviser before committing.
What was proposed?
The Spanish government proposed a new tax that could apply to certain property purchases by buyers who are not resident in the European Union.
The idea was to discourage speculative purchases by non-EU non-resident buyers in areas where housing affordability is under pressure.
In simple terms, the proposal was discussed as a tax of up to 100% of the property value in certain cases.
However, a proposal is not the same as a law.
Who could be affected?
The key point is residence, not only nationality.
The proposal was aimed at buyers who are not resident in the European Union. This means buyers should not look only at their passport, but also at their tax and legal residence.
For example, the situation may be different for:
- a UK resident buying a holiday home in Spain;
- a US resident buying an investment property;
- a non-EU national who is legally resident in Spain;
- a non-EU national who is legally resident in another EU country;
- a company based outside the European Union.
Each case would need to be checked if the proposal ever becomes law.
Does it apply to new-build properties?
Buyers should be careful with simple answers.
The draft proposal appeared mainly relevant to transactions not subject to VAT, such as many resale property purchases. New-build properties sold by developers are generally subject to VAT, so they may fall outside the proposed mechanism.
However, buyers should not choose a structure only to avoid a proposed tax.
If the measure ever progresses, the final wording, exemptions and anti-avoidance rules could change. Any purchase structure should be reviewed by a Spanish tax lawyer.
What is the status in 2026?
As of the last review date of this article, the tax is not in force.
That means buyers should not add a 100% tax to their current purchase budget.
For now, buyers should budget for the existing purchase costs, such as:
- ITP for many resale purchases;
- VAT and AJD for many new-build purchases;
- notary and land registry costs;
- legal fees;
- mortgage-related costs, if financing is used.
The proposed non-EU tax is a political and legislative risk to monitor, not a tax currently payable at completion.
What should buyers do now?
Non-EU buyers should not panic, but they should stay informed.
Before buying, it is sensible to:
- confirm current purchase taxes with a lawyer;
- check whether the property is resale or new-build;
- understand the buyer’s residence status;
- avoid relying on rumours or headlines;
- calculate the purchase using current law;
- monitor future legal changes before completion.
A serious buying decision should be based on the law in force, not on media headlines.
Bottom line
Spain’s proposed 100% tax for non-EU non-resident property buyers is not currently a tax that buyers have to pay.
It may remain a political topic, and it could change in the future. But today, foreign buyers should focus on the existing Spanish purchase rules and get proper legal and tax advice before signing.
The safest approach is simple:
Monitor the proposal, but do not treat it as a current buying cost unless it becomes law.
