The Spanish government, led by Prime Minister Pedro Sánchez, has announced its intention to apply a 100% tax on real estate purchases by non-residents and non-European Union citizens.
This measure is still in the announcement phase and no details have been provided regarding its implementation or a clear timeline.
Context of the Announcement
This tax it’s an initiative aimed at combating speculation in the real estate market and addressing the growing housing affordability crisis in the country.
According to Spain’s property registry, in 2023, foreign buyers acquired 87,000 properties, representing 14% of the real estate market. However, non-EU buyers—the main target of this measure—accounted for only 27,000 of these transactions, approximately 5% of the total, as reported by IMI Daily.
The government argues that this group of investors primarily purchases real estate for speculative purposes, exacerbating high property prices and limiting local residents’ access to housing.
Sánchez justified the proposal by citing a 48% increase in housing prices over the past decade in Europe, which has created an unsustainable gap between housing costs and household incomes. According to the Prime Minister, this situation demands a decisive response to prevent a social divide between wealthy property owners and financially struggling tenants.
Potential Impact of the 100% Tax on Foreign Investors
Challenges in Acquiring Property in Spain
If implemented, this tax would make property acquisition financially unfeasible for many non-EU investors looking to settle in Spain, whether for permanent residence or as part of an asset diversification strategy.
Effect on Residency by Investment Programs
The measure follows the recent announcement of the closure of Spain’s Golden Visa investment program in April 2025. This further complicates options for non-EU foreigners, who may have to rely on alternatives such as the Non-Lucrative Visa, which requires staying in Spain for at least six months a year and demonstrating accommodation, either through purchase or rental. Given such a high tax, renting could become the only viable option for many, as noted by Moneyweek.
Impact on the Real Estate Market
While the government’s goal is to control prices and curb speculation, some experts argue that these measures could reduce foreign investment in the real estate sector, affecting market liquidity and potentially slowing down the development of new real estate projects.
International Reactions
This initiative is part of a broader European trend to discourage foreign real estate investment, similar to policies already in place in countries like Canada and Denmark. However, critics argue that Spain’s housing affordability issue is more rooted in a lack of housing supply and inefficient regulatory policies rather than foreign demand.
AIM Global Helps You Find the Best Investment or Residency Options in Spain
It is important to highlight that, as of now, this tax announcement has not been formalized into legislation, nor has a timeline for its enforcement been provided.
As a result, non-EU foreign investors should stay informed about the development of this policy and assess its potential impact on their investment or residency plans in Spain.
Whether your goal is to invest, seek residency or citizenship, or work remotely as a digital nomad in Europe, AIM Global has the experience and the professional team to guide you through the process.
Schedule a consultation with us today. There are various visa types and investment opportunities—we help you find the best option that suits your investor profile.
