Has Spain's 100% Tax on Non-EU Property Buyers Become Law? The 2026 Status

Is Spain's 100% tax on non-EU property buyers actually law in 2026?

No. As of June 2026 it is still a proposal and has not been enacted. The Socialist-led minority government presented the draft to parliament on 22 May 2025, but the bill stalled and had still not been debated in the Congress of Deputies as of late March 2026. Until parliament approves it and an effective date is published in the Boletín Oficial del Estado, the tax does not exist in law and cannot be charged on any purchase.

What is the proposed tax called and how would it work?

The measure is drafted as a "Complementary State Tax on Property Transfers" (Impuesto Estatal Complementario al Impuesto sobre Transmisiones Patrimoniales). It would sit on top of the existing regional Transfer Tax (ITP), not replace it. The headline figure is a charge of up to 100% of the property value, which is why it has been described in the press as a 100% tax. It was announced by Prime Minister Pedro Sánchez in January 2025 as a tool to cool housing demand from non-resident foreign buyers.

Who would actually have to pay it?

The tax targets non-EU residents who are not tax resident in Spain. EU and EEA residents are exempt, and UK nationals who hold a Spanish residence permit would also fall outside the charge because the trigger is residency status, not nationality. A non-EU buyer who is legally resident in Spain would generally not be the intended target. Anyone unsure of their position should confirm residency status with a Spanish abogado before signing anything.

Does the proposed tax apply to new-build properties?

No. As drafted, it applies only to second-hand (resale) homes, the same purchases that already attract ITP. New-build and off-plan purchases are excluded because first sales from a developer are subject to VAT (IVA) at 10% plus Stamp Duty (AJD), not ITP. That carve-out is significant: a non-EU buyer purchasing directly from a developer would not face the complementary charge even if the bill passed in its current form.

What transfer tax do non-EU buyers pay on Spanish resale property today?

Today the relevant tax is the regional ITP, which ranges from roughly 6% to 11% of the purchase price depending on the autonomous community. Madrid applies 6%, Andalusia 7%, and the Canary Islands 6.5%, while the Balearic Islands run on a sliding scale into double digits. Valencia is permanently cutting its general rate from 10% to 9% with effect from 1 June 2026. ITP must be paid within 30 calendar days of signing the title deed (escritura) before a notary.

Why has the 100% tax stalled?

Spain's government holds a minority in parliament and depends on a shifting group of smaller parties to pass legislation, and new taxes are among the hardest measures to find a majority for. The Catalan party Junts, whose votes the government has often needed, has opposed the measure, and the bill was never brought to a debate through the first quarter of 2026. There is no published timetable for a vote, so its future is genuinely uncertain rather than imminent.

What should non-EU buyers do while the proposal is pending?

Treat the 100% tax as a risk to monitor, not a cost to budget for, because it is not law and may never become law. Buyers concerned about the proposal sometimes look at new-build or off-plan stock, which sits under VAT and would be outside the drafted charge, or confirm whether Spanish residency would change their position. The most important step is to verify the current legal and tax status of a specific purchase with an independent Spanish lawyer rather than relying on headlines.

Bektu tracks regulatory changes like this one across markets so foreign buyers can separate what has actually passed from what is still a political proposal.