Spain is planning a dramatic new tax measure to tackle its housing crisis: a 100% property transaction tax for non-EU buyers, including UK nationals. Prime Minister Pedro Sánchez announced the proposal to make homes more affordable for Spanish citizens. If approved by parliament, this tax would effectively double the cost of buying property in Spain for non-EU buyers.
Property buyers in Spain pay between 8% and 11.5% in taxes, depending on the transaction type. Unlike the UK’s 2% surcharge for non-resident buyers, Spain has no additional tax for foreign investors – until now. Brits, who purchased over 12,000 Spanish properties in 2023, could see their dream of a sunny holiday home become prohibitively expensive.
This tax proposal accompanies the end of Spain’s Golden Visa programme, which allowed non-EU citizens to gain residency by investing at least €500,000 in property, businesses, or government bonds. Published in November 2024, the legislation takes effect on 3 April 2025.
The dual measures reflect Spain’s response to protests over-inflated housing prices and a shortage of social housing driven by over-tourism and foreign investment. Demonstrations last summer from Barcelona to the Canary Islands highlighted public frustration.
While the 100% tax is not yet law, it signals a significant shift in Spain’s property market. Combined with an existing wealth tax, these changes aim to prioritise housing for locals over foreign investors.
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