A 100% tax on buyers outside the EU in Spain: what is real and what is media hype in 2026

Few legal headlines have caused as much commotion among international buyers of Spanish real estate as the news about a tax of up to one hundred percent on home purchases by citizens of countries outside the European Union. The wording sounded like a market sentence: pay for a house, and then hand the state another amount just as large on top. For buyers from the UK, the US, Switzerland, Russia, and other countries outside the EU, it sounded like a signal that the doors to Spain are closing.

More than a year after the first announcement, there is still more panic than facts around this measure. Between the political intent and the actual law there is a whole parliamentary process that this initiative never made it through. This guide separates media noise from legal reality: what exactly was proposed, where this initiative stands now, who it affects in principle, and how a buyer should act reasonably when purchasing real estate on the Costa del Sol in 2026.

The material is for information purposes and does not replace a consultation with a specialized tax adviser and lawyer for a specific situation.

A short version for those in a hurry

The key fact: as of mid-2026, there is no one hundred percent tax. It has not been adopted and it is not in force. The initiative was announced by Prime Minister Pedro Sánchez in January 2025 as part of a package of housing measures and was submitted to parliament as a bill on 22 May 2025. Since then, the bill has never been discussed or voted on in the Congress, and from the government’s January 2026 housing package it was quietly removed. The government has a parliamentary minority, key coalition partners are publicly against it, and specialists in constitutional law and EU law doubt its viability. The proposal concerned only buyers who are not EU residents when purchasing second-hand housing, and it did not affect new-build properties. Buying real estate by foreigners remains fully legal under the current rules. The measure should be kept in view, but it should not be treated as a current item of expense.

Where did this headline come from

On 13 January 2025, Prime Minister Pedro Sánchez presented a package of measures to tackle the housing affordability crisis. One of them was a proposal for a new state tax, formally called an additional state tax on the transfer of real estate, aimed at purchases of housing by non-residents from countries outside the EU.

On 22 May 2025, the government submitted a draft law to the Spanish parliament. The stated logic was social: the authorities believe that in overheated coastal and tourist areas, speculative purchases by foreign investors push prices up and push local residents out of the market, and a punitive tax should reduce this demand and free up housing for residents of Spain.

It was the scale of the proposed rate, up to one hundred percent of the property’s value, that turned the news into a global headline. On paper, it would have meant doubling the cost of the purchase and the harshest tax regime for foreign buyers across the entire EU.

Key fact: the proposal is not a law yet

This is where the main line is drawn, and where loud headlines make people lose it. A proposal and a law are not the same thing.

Fifteen months after the announcement, the bill still had not been formally brought for discussion in Congress. No version of it was put to a vote, and the government’s own housing package in January 2026 quietly removed this measure from the agenda. According to media reports at the end of March 2026, more than ten months after the bill was submitted, it still had not been discussed in Congress. A source in the government acknowledged that new taxes are among the most difficult issues for securing a majority in the current parliament.

The reason is stuck in political arithmetic. The government has a parliamentary minority, and key coalition partners have publicly spoken out against this measure. At the same time, specialists in constitutional law and EU law question whether the initiative, in its current form, can pass any legal review at all.

The takeaway for the buyer is simple: as of mid-2026, there is no one hundred percent tax. Today, there is nothing additional to pay.

Legal doubts: why the measure may not hold up

Even if the initiative ever reaches a vote, it has serious legal vulnerabilities that lawyers point out.

First is compliance with EU law. Different treatment of buyers from within the EU and outside the EU may violate the principle of free movement of capital, which in European law also applies to third countries. Second is constitutionality. A one hundred percent tax could be considered confiscatory, meaning it would violate the principle of proportionality built into Spain’s legal system. Third is effectiveness. Buyers outside the EU make up only a small share of all transactions, while the root of the housing affordability problem lies in insufficient construction, not in foreign demand.

These doubts do not guarantee that the measure will fail, but they explain why even if it were adopted, it would almost inevitably face legal scrutiny.

What exactly was proposed: important limits on coverage

There is a lot of misunderstanding around this topic, so it is important to clearly outline what the proposal is not. It is not a tax on owning real estate in Spain, and it is not a rental tax. The proposal was about an additional tax at the time of purchase, calculated on top of the existing regional tax on the transfer of real estate.

The proposal had two key limits on coverage, which sharply narrowed the group of affected buyers.

The first limit concerns residency status, not just citizenship. The measure was aimed at buyers who are not tax residents of the European Union. This means you need to look not only at a passport, but also at tax and legal residency. A buyer who establishes residency in Spain before the transaction would, in principle, be taken out of the scope of this measure, even if it were adopted.

The second limit concerns the type of housing. As submitted, the proposal applied to second-hand housing. Buying a new-build property or an asset at the construction stage would be outside the scope of the proposed tax. For a buyer considering off-plan projects, this is a separate important nuance.

What all this means for a buyer in Marbella

Let’s summarize the practical conclusions for anyone considering buying real estate on the Costa del Sol.

Today, the measure does not exist, and the purchase proceeds under the current tax rules. In general, Spanish tax law does not allow retroactive application of taxes on the transfer of real estate to transactions that have already been completed, and a completed purchase is a completed right. In other words, even a hypothetical future adoption of the law would not reach transactions closed before it entered into force. No legislator proposed retroactive application of this measure.

For those who plan to live in Spain anyway, there is a straightforward answer to the question of the tax. Establishing residency before the purchase is completed fully removes any potential exposure to this measure, even if it were to pass, because the tax was aimed specifically at EU non-residents. Here the topic directly connects with alternative visa routes after the closure of the Golden Visa, the digital nomad visa, and the visa with no right to work, which are already on many buyers’ agendas.

For those buying a second home or an investment property without any intention to establish residency, it is important to remember the limitation by type of housing: new-build properties and assets at the construction stage were outside the scope of the proposed tax. New projects and villas on the Costa del Sol remain fully available to international buyers.

How to respond reasonably: planning instead of panic

The right reaction to this topic is not anxiety, but calm planning. If the initiative ever moves forward, a sensible response would be a well-thought-out deal structure, not rushed decisions driven by headlines.

A sound strategy consists of several elements. Keep the bill’s status under observation, but do not include a non-existent tax in the purchase budget. Clarify your residency status in advance, because it is residency—not citizenship—that would determine exposure to the measure. Work from the start with a Spanish tax adviser and a lawyer who will assess your specific situation. And if the transaction is already in progress, it makes sense to check the timing and the terms of the contract.

It is also important to consider what is happening in the market itself against the backdrop of these news items. Official statistics for Spain for 2025 showed a noticeable retreat by non-resident buyers: the number of such transactions fell by almost ten percent year-on-year, to just over 51,000 operations, the lowest level in four years. Many people attribute part of this cooling specifically to uncertainty around tax initiatives and the closure of the Golden Visa. This means that for a buyer who looks at the real situation rather than headlines, there is less competition in the market from those who were scared by the media noise.

The ABARZO team helps you understand the current tax and legal context for buying real estate in Marbella and structure the deal with your residency situation in mind. Contact us to discuss your case.

ABARZO Real Estate — Your guide to real estate and lifestyle in Marbella