Spain 100% Property Tax for Non-EU Buyers: The Facts

Spain’s proposed 100% tax on property purchases by non-EU buyers is not in force. As of April 2026, the bill has not been debated in parliament once since it was submitted in May 2025. The Spanish government — a minority coalition — does not have the votes to pass it, and the bill’s legal foundation is disputed at both constitutional and EU level. Foreign buyers can still purchase property in Spain under the same rules that applied before the announcement.

That said, the proposal is real, it is in parliament, and it could move forward in a modified form if the political situation changes. Understanding exactly what it says — and what it does not say — matters for anyone planning a purchase on the Costa Brava in 2026.

What Was Actually Proposed and When

On 13 January 2025, Prime Minister Pedro Sánchez announced a package of 12 measures to address Spain’s housing affordability crisis. One of them was a proposed new state-level tax — formally called the “Complementary State Tax on Real Estate Transfers” — targeting property purchases by non-EU, non-resident buyers.

On 22 May 2025, the government submitted the draft bill to the Spanish parliament. According to Reuters reporting from March 27, 2026, the bill had still not been debated in congress by that date — more than ten months after submission. A government source told Reuters that new taxes are among the most difficult issues on which to gain majority support in the current parliament.

The current status, as of April 2026: the proposal is not law, has not been voted on, and no implementation date exists.

What the Bill Actually Says

The proposal, as submitted to parliament in May 2025, would create an additional tax charged on top of the existing regional transfer tax (ITP). The key terms of the draft:

• Who it targets: buyers who are not resident in the EU. The draft bill’s formal title refers to “non-residents in the European Union.” Whether EEA nationals (Norway, Iceland, Liechtenstein) are excluded or included has generated legal debate — the wording is ambiguous on this point, and it would likely be clarified through parliamentary amendment or court challenge if the bill progresses.
• What triggers it: purchase of resale residential property in Spain, or the acquisition of real rights over such property (life interest, bare ownership, usufruct).
• The rate: 100% of the taxable base — calculated as the higher of the cadastral reference value or the agreed market price. To be precise: this is not a tax of 100% of the purchase price charged instead of ITP. It is an additional tax on top of ITP, with its own taxable base calculated at approximately 100% of the property value. The combined effect — paying ITP plus this additional tax — would roughly double the total purchase cost for an affected buyer.
• What is exempt: new build property sold by a developer. New builds are subject to IVA (VAT) at 10%, not ITP, so they fall entirely outside the proposed tax’s scope.
• Managed by: the central Spanish state, not the autonomous regions — meaning it would apply uniformly across all regions including Catalonia.

Two clarifications that matter for most Costa Brava buyers:

First, EU nationals are completely unaffected. French, German, Dutch, Belgian, Italian, and all other EU buyers — who together represent the majority of foreign buyers on the Costa Brava — face no change under this proposal. The 33.7% of foreign buyers who are French (the dominant nationality in Catalonia) are not touched. EEA nationals (Norway, Iceland, Liechtenstein) are likely also excluded, though the draft wording on this is ambiguous and would require clarification if the bill progresses.

Second, non-EU nationals who are already residents in Spain are also not affected. The tax targets non-residents from outside the EU — buyers who live abroad and purchase in Spain without establishing legal residence here first.

Why It Has Stalled

The Spanish government under Pedro Sánchez is a minority coalition. It relies on the support of smaller regional and left-wing parties on a case-by-case basis. For this bill specifically, that support is not there.

Junts, the Catalan separatist party which had previously supported the government on some legislation, withdrew its backing and explicitly opposes the tax. Junts lawmaker Marta Madrenas called it misdirected: “The government has chosen to limit, ban and penalise instead of addressing the real issue: a lack of housing supply.”

The bill also faces structural legal obstacles that make even a modified version difficult to implement:

EU free movement of capital (Article 63 TFEU): EU law restricts member states from imposing restrictions on capital movements between EU states and third countries. Spain has previously been ruled against by the European Court of Justice for discriminatory tax treatment of non-residents. Baker McKenzie, reviewing the draft, stated that the proposal is “unlikely to survive legal scrutiny in its current form.”

Spanish constitutional law: A 100% tax rate could be challenged as confiscatory and disproportionate under Spanish constitutional principles of proportionality. Article 14 of the Spanish Constitution prohibits discrimination based on nationality; the government’s argument is that the tax is based on residency status, not nationality — but that distinction is legally contested.

Beyond the legal questions, economists and real estate professionals have pointed out a practical problem: non-EU non-resident buyers represent a relatively small share of total transactions. According to Reuters, foreigners as a whole made up approximately 20% of all buyers in 2025. Non-EU non-residents are a subset of that — and their removal from the market would do little to resolve a housing crisis driven primarily by chronic undersupply of new construction.

What This Means for Buyers on the Costa Brava

For the overwhelming majority of international buyers on the Costa Brava, this proposal changes nothing in practical terms right now. Here is the breakdown by buyer type:

French, German, Dutch, Belgian buyers: Not affected at all. EU nationals are explicitly excluded from the proposed tax, regardless of whether they are resident in Spain or not.

British buyers: Potentially in scope if they are non-resident — but only if and when the bill passes, which has not happened. British buyers who establish legal residence in Spain before purchasing would not be affected even if the law passes.

Ukrainian, US, and other non-EU buyers: In scope as non-residents under the proposal as written. The practical routes around it, if it does eventually pass, are: establish Spanish residency before purchasing, or purchase a new build rather than a resale property.

Anyone purchasing new build: Not affected, full stop. New developments are IVA-applicable transactions and are explicitly excluded from the proposed complementary tax.

Based on our experience with clients at VivendaNova, the announcement in January 2025 created a wave of concern and legal inquiries — particularly among Ukrainian and British buyers — that was significantly out of proportion to the actual legal risk at the time. As Paloma Perez, CEO of Lucas Fox, told Reuters: the announcement “created uncertainty and triggered a surge in legal and tax inquiries, and brought forward some purchases that were already well advanced” — but did not spark a buying spree, as it “unsettled some high-net-worth international buyers who value legal certainty.”

That description matches what we saw. Some buyers accelerated decisions that were already in progress. Others paused. The market on the Costa Brava continued moving — because the fundamentals of supply, demand, and pricing are driven by forces far larger than a stalled parliamentary proposal.

Three Scenarios Going Forward

Scenario 1 — Bill fails (most likely based on current evidence): The minority government cannot assemble a majority. The bill lapses or is withdrawn. Foreign buyers continue under existing rules. No change.

Scenario 2 — Modified version passes: The 100% rate is reduced to something politically viable — 10–20% has been discussed by commentators as a more realistic outcome if any version passes. This would be a meaningful additional cost for non-EU non-resident resale buyers, but not the headline-grabbing doubling of the purchase price.

Scenario 3 — Bill passes as proposed: The least likely scenario given current parliamentary arithmetic and legal challenges. Even if this happened, the effective date would be announced, giving buyers time to complete transactions already in progress or pivot to new build purchases.

In all three scenarios, EU buyers are unaffected. In all three scenarios, established residents in Spain are unaffected. In all three scenarios, new build purchases are unaffected.

What to Do If You Are a Non-EU Buyer Considering a Purchase

The honest answer is: do not let a stalled parliamentary proposal drive your purchase timeline on its own. The proposal may move, may be modified, or may disappear. Basing a decision on the headline rather than the current legal reality is exactly how buyers end up making poorly timed choices in either direction.

What does make sense is to factor the proposal into how you structure your purchase:

If you are planning to live in Spain — and many of our clients are — establishing residency before completing the purchase removes exposure to this tax entirely, even if it passes. The Non-Lucrative Visa process takes 6–9 months. If your move to the Costa Brava is planned for 2026 or 2027, starting that process now is worth considering regardless of the tax question.

If you are buying as a second home or investment without intending to establish residency, new build or off-plan purchases are outside the proposed tax’s scope entirely. Several new build projects are currently active on the Costa Brava — including developments in Lloret de Mar (Nova Fenals), Platja d’Aro (Brava by Kronos, designed by Ricardo Bofill), and Blanes — that would not be affected by this proposal in any scenario.

If you are buying resale and are a non-EU non-resident, track the bill’s progress and take advice from a Spanish tax lawyer before signing. The legal landscape here requires individual assessment, not general rules.

(This article is general market information. It does not constitute legal or tax advice. Verify the current status of any legislation with a qualified Spanish immigration lawyer or tax advisor before making purchasing decisions.)

Frequently Asked Questions

Is Spain’s 100% property tax for non-EU buyers in force in 2026?

No. As of April 2026, the bill has not been debated in parliament and is not law. It was submitted as a draft in May 2025 and has stalled due to the minority government’s inability to build a parliamentary majority. No implementation date has been set.

Does the proposed tax affect EU citizens buying property in Spain?

No. EU nationals are explicitly excluded from the proposal. French, German, Dutch, Belgian, and all other EU buyers are entirely unaffected. EEA nationals (Norway, Iceland, Liechtenstein) are likely excluded as well, though the bill’s wording on this is debated among legal experts and would require parliamentary clarification if the bill advances.

Does it affect British buyers?

British buyers who are non-residents in Spain would be within scope of the proposal as written. British buyers who have established legal residence in Spain — through the Non-Lucrative Visa, Digital Nomad Visa, or any other legal residency route — would not be affected even if the bill passes. British buyers purchasing new build property would not be affected regardless of residency status.

Does it affect Ukrainian buyers?

As non-EU nationals, Ukrainian buyers would be within scope of the proposal if they are non-residents. The same routes apply as for British buyers: establish Spanish residency before purchase, or buy new build rather than resale. Ukrainians who already hold residency in Spain are not affected.

Are new build properties exempt from the proposed tax?

Yes. New build property sold by a developer is subject to IVA (VAT at 10%), not ITP (transfer tax). The proposed complementary tax is an addition to ITP only. New builds and off-plan purchases are outside its scope entirely — confirmed in the draft legislation.

What happens if the bill passes while I am mid-purchase?

Based on Spanish legislative practice, any law that passes would include an effective date — and there would typically be time for transactions already in progress to complete before the law takes effect. The Golden Visa closure in April 2025 followed this pattern: applications submitted before the effective date were honoured. That said, this is general precedent, not a legal guarantee for this specific bill.

The Bigger Picture for the Costa Brava Market

The housing crisis driving this proposal is real. Spain faces a structural undersupply of homes — CaixaBank Research estimates a deficit of 65,000 units in Catalonia alone over 2021–2024, and the national gap runs to between 515,000 and 765,000 units. Rents across Spain have roughly doubled in the areas under most pressure since 2015. These are legitimate problems.

The question is whether a tax targeting non-EU non-resident buyers — who represent a small fraction of total transactions — addresses those problems. Most economists and property market professionals say it does not. The supply shortfall is structural, not caused by foreign buyers. Coastal regions like the Costa Brava have always attracted international buyers, and restricting that segment does nothing to increase housing stock for local residents.

What the proposal does do is create legal uncertainty — and legal uncertainty is the one thing that genuinely suppresses high-value real estate markets. That effect has already been felt, and it existed regardless of whether the bill passes.

Our view at VivendaNova: the fundamentals of the Costa Brava market — constrained supply, growing foreign demand, improving mortgage conditions — have not changed. Buyers with clear requirements and a realistic timeline should be assessing those fundamentals, not a stalled parliamentary bill. The conversation worth having is about what you are buying, where, and whether the specific property makes sense — not whether a proposal that has not been debated in ten months might change the rules.

For the full picture on costs of buying in 2026, read our guide to hidden costs when buying property on the Costa Brava. For residency options for non-EU buyers, see our guide to the Non-Lucrative Visa Spain 2026.

Contact VivendaNova to discuss your property search on the Costa Brava →