Spain's 100% Foreign Buyer Tax: Complete Guide
Spain's 100% Foreign Buyer Tax: Complete Guide
Last Updated: June 11, 2025 | Latest: Parliamentary debate scheduled July 2025
37 people reading this page now
30-Second Summary
Spain's announcement of a potential 100% tax on property purchases by non-EU buyers has sent shockwaves through the international real estate market. If you're considering buying property in Spain or already own Spanish real estate, this comprehensive guide answers all your critical questions about this unprecedented measure.
- What: Proposed 100% tax on property purchases by non-EU residents
- Who: Affects UK, US, and other non-EU buyers spending less than 183 days/year in Spain
- When: NOT in effect - requires parliamentary approval (unlikely to pass)
- Where: Would affect all Spanish regions including Costa Blanca hotspots
- Why Buy Now: Current uncertainty = better prices and less competition
Bottom Line: Most experts believe this is political posturing. Even if passed, it would likely be a more reasonable 10-20% tax. Smart buyers are using current uncertainty to negotiate better deals!
New to buying in Spain? Check our Complete Spanish Property Buying Guide for step-by-step help.
15+
Years Experience
500+
Happy Families
4.9/5
Google Rating
3
Office Locations
What Is Spain's 100% Foreign Buyer Tax?
On January 13, 2025, Spanish Prime Minister Pedro Sanchez announced plans to impose a 100% tax on real estate purchases by non-European Union residents. This means if you're a non-EU buyer purchasing a 300,000 euro property, you would pay an additional 300,000 euros in taxes, effectively doubling the purchase price.
Important: This is still just a proposal - NOT law yet! No implementation date has been set, and it faces significant parliamentary hurdles.
Announced
January 2025
Parliament
July 2025?
Implementation
Unknown
Who Exactly Does This Tax Target?
The tax specifically targets:
- Non-EU citizens (British, American, Canadian, Chinese, etc.)
- Non-residents who spend fewer than 183 days per year in Spain
- Investment property buyers not planning to live in Spain full-time
The tax does NOT apply to:
- EU citizens from any member state
- Non-EU citizens with Spanish residency (living 183+ days per year in Spain)
- Properties already owned before the law takes effect
When Will the 100% Tax Start? Implementation Timeline
Critical dates to remember:
- January 13, 2025: Initial announcement by PM Sanchez
- April 3, 2025: Golden Visa program officially ended (now closed)
- Unknown: Parliamentary approval date
- Unknown: Tax implementation date
The proposal must pass through Spain's fragmented parliament, where Sanchez's minority coalition may struggle to secure approval.
What Are the Real Chances This Tax Will Happen?
Many experts believe the 100% tax faces significant obstacles:
Why It's Unlikely to Pass:
- Parliamentary Challenge: Sanchez's minority coalition lacks votes
- Legal Issues: May violate EU free movement of capital principles
- Economic Impact: Could harm Spain's crucial tourism and property sectors
- Regional Opposition: Coastal regions will resist
- Minimal Impact: Non-EU buyers are only 5% of the market
Expert Opinions:
Property Expert Mark Stucklin: "This would be so ineffective and counterproductive that the PSOE can't really be serious"
Legal Expert Alejandro Del Campo: "A State Tax which penalises non-residents makes no sense"
Most Likely Outcome:
Rather than 100%, Spain may implement:
- A more reasonable 10-20% foreign buyer tax
- Stricter regulations on short-term rentals
- Focus on building more housing supply
- Enhanced tenant protections
The consensus? This is likely political posturing rather than serious policy.
Costa Blanca Property Market Impact
The Costa Blanca remains one of Spain's most attractive regions for British buyers:
Torrevieja: The British Haven
- Current Market: Over 30% of property buyers are British nationals
- Average Prices: 150,000-250,000 euros for 2-bed apartments
- Why Buy Now: Established British community, excellent healthcare
- Tax Impact: Minimal - strong rental market ensures viability
Orihuela Costa: Golf and Beach Paradise
- Current Market: Home to 20+ golf courses
- Average Prices: 180,000-350,000 euros for townhouses
- Why Buy Now: Lower prices than northern Costa Blanca
- Tax Impact: High EU golfer demand maintains values
Javea: The Jewel of Costa Blanca
- Current Market: Premium location with limited development
- Average Prices: 300,000-600,000 euros for villas
- Why Buy Now: UNESCO protection ensures exclusivity
- Tax Impact: Wealthy EU buyers provide stability
Moraira: Exclusive Coastal Living
- Current Market: Luxury market with strict regulations
- Average Prices: 400,000-1,000,000+ euros for sea views
- Why Buy Now: Limited supply, exceptional growth potential
- Tax Impact: High-end market less affected
Calpe: Modern Infrastructure Meets Tradition
- Current Market: Perfect blend of amenities and culture
- Average Prices: 200,000-400,000 euros for apartments
- Why Buy Now: New marina development
- Tax Impact: Diverse buyer base reduces risk
Current Property Purchase Costs vs. Future Costs
Current Costs (Before 100% Tax) - Costa Blanca Example
For a 300,000 euro property in Javea:
- Property price: 300,000 euros
- Transfer tax (ITP): 30,000 euros (10% in Valencia)
- Notary fees: 1,000-2,000 euros
- Registration: 500-1,000 euros
- Legal fees: 3,000-6,000 euros
Total: Approximately 334,500-339,000 euros
Future Costs (With 100% Tax) - If Implemented
For the same 300,000 euro property:
- Property price: 300,000 euros
- 100% tax: 300,000 euros
- Transfer tax: 30,000 euros
- Other fees: 4,500-9,000 euros
Total: Approximately 634,500-639,000 euros
But Here's Why It Won't Happen:
Most experts predict a maximum 20% additional tax, making the same property cost approximately 394,500 euros - still excellent value compared to UK property prices!
Quick Cost Calculator
See how the proposed tax would affect your purchase:
Current Cost (with fees): €339,000
With 100% Tax: €639,000
Likely 20% Tax: €399,000
Properties are selling 15% faster this month as buyers act before any changes!
Frequently Asked Questions
Will the tax apply to properties I already own?
No current indication the tax would be retroactive. It targets new purchases only.
Can I avoid the tax by becoming a Spanish resident?
Yes! If you obtain Spanish residency and spend 183+ days per year in Spain, you would not be subject to this tax.
Can British citizens still buy property in Spain?
Absolutely yes! British buyers can still purchase Spanish property. The proposed tax only affects non-residents.
Is the 100% tax definitely happening?
No. It's only a proposal requiring parliamentary approval. Many experts believe it's unlikely to pass in its current form.
Should I buy now or wait?
Buy now! Current uncertainty means less competition, better negotiation power, and motivated sellers.
What Our Clients Say
"Hansson & Hertzell helped us navigate the uncertainty perfectly. We secured our dream villa in Javea at an excellent price thanks to their expertise and local knowledge."
- Sarah & John Thompson, UK
"We were worried about the tax proposals, but Oskar explained everything clearly and helped us become Spanish residents. Now we enjoy 300 days of sunshine without any tax worries!"
- Michael & Linda Davies, Manchester
"Professional, knowledgeable, and always available. They found us an amazing off-market property in Moraira that we never would have found ourselves."
- Robert & Emma Wilson, London
Special Considerations for British Buyers
As the largest group of foreign property buyers in Spain, British citizens have unique considerations:
Why British Buyers Shouldn't Panic:
- Established Community: Over 300,000 British residents already in Spain
- Strong Bilateral Ties: UK-Spain relationship transcends EU membership
- Economic Importance: British buyers contribute billions to Spanish economy
- Existing Rights: Current property owners completely unaffected
British Buyer Advantages:
- Language: Extensive English-speaking support infrastructure
- Direct Flights: Multiple daily connections to all major Spanish cities
- Healthcare: Reciprocal healthcare agreements in place
- Banking: British-friendly financial services widely available
Smart Strategies for Brits:
- Buy Now: Take advantage of current uncertainty for better prices
- Consider Residency: 183 days in Spain's sunshine isn't exactly hardship!
- Explore Companies: UK limited companies may offer solutions
- Focus on Value: Even with potential tax, Spain offers better value than UK property
Need help navigating the process? Our Spanish Property Buying Guide covers everything from NIE numbers to notary procedures.
Ready to Make Your Spanish Property Dream a Reality?
Don't let uncertainty stop you from securing your perfect Costa Blanca property!
Why Choose Hansson & Hertzell Invest?
- 15+ years helping British buyers in Costa Blanca
- Exclusive off-market properties
- Complete purchase and residency support
- English-speaking legal network
- Offices in Torrevieja, Orihuela Costa and Javea
- Full support from viewing to completion - see our Buying Process Guide
Get expert guidance from Costa Blanca's trusted property specialists
Chat on WhatsAppNeed Financing for Your Spanish Property?
We partner with leading mortgage specialists to help you secure the best financing options!
- Competitive rates for non-residents
- Up to 70% financing available
- English-speaking mortgage advisors
- Fast pre-approval process
Partner with Habeno - Trusted mortgage specialists for international buyers
Back
Call us
Send message
