The recent headlines about Spain introducing a “100% property tax” have understandably sparked concern — especially among international buyers eyeing the Costa Blanca and other sought-after coastal destinations. But what’s the truth behind the news?
At La Boutique Luxury Real Estate, we believe in providing clarity, context, and calm. Let’s break down the facts behind this proposed measure, what it could mean for foreign buyers, and how it may (or may not) impact the real estate landscape in Spain.
In January 2025, the Spanish government announced a draft housing reform package aimed at addressing the national housing crisis. One of the most controversial measures is a proposed one-time surcharge of up to 100% on the property transfer tax (ITP) for certain foreign buyers.
The target: Non-EU nationals who are not tax residents in Spain (i.e., those who live in Spain for less than 183 days per year).
The tax would apply only when purchasing residential property, especially in high-demand areas.
It is not an annual property tax, but a one-time extra charge paid at the time of purchase.
In Spain, when you buy a resale property (as opposed to a new build), you typically pay a property transfer tax ranging from 6% to 10%, depending on the region.
For example:
In the Valencian Community (which includes Costa Blanca), the standard ITP is currently 10%.
Under the new proposal, this amount could double — or more — for affected buyers.
This phrase has caused confusion. It does not mean buyers pay 100% of the property price in tax. Rather, it refers to a possible surcharge of up to 100% of the base transfer tax, or in some cases, a percentage based on the cadastral or assessed value of the property.
Example scenario:
If you currently pay €30,000 in ITP on a €300,000 home, the proposed surcharge could add up to another €30,000, totaling €60,000 in taxes.
This is still a substantial increase — but not full confiscation.
The proposed surcharge would apply only to:
Non-EU citizens
Non-residents (living fewer than 183 days per year in Spain)
Buyers of residential property, typically second homes or investments
The tax would not apply to:
EU citizens
Residents (even non-EU) who are tax-resident in Spain
Spaniards returning from abroad
Buyers of commercial properties or primary residences (pending final law text)
No — this is still a proposal. As of June 2025:
The bill is under parliamentary debate.
The government does not have a majority and will need support from other parties.
Many legal experts predict amendments or outright rejection, citing potential discrimination and economic backlash.
The stated goal is to:
Discourage speculative buying from abroad that drives up local housing prices.
Increase availability of homes for local residents.
Reinforce Spain's commitment to housing as a human right.
While the intention may be socially driven, many real estate professionals argue that this move could discourage investment, reduce tax revenues, and unfairly penalize responsible foreign homeowners.
If you’re:
A non-EU buyer planning to spend time in Spain (183+ days/year), you can likely avoid the surcharge by becoming a tax resident.
Already a resident or EU citizen, this change would not affect you.
Considering property in Spain, now is the time to act proactively before any changes are finalized.
We’re monitoring this legislation closely and will keep our clients informed every step of the way. For now:
Don’t panic — this is a proposed measure, not a guaranteed law.
If you're actively searching, speak with us to explore purchase strategies, tax planning, and legal residency options.
Let us connect you with expert legal and tax advisors to ensure you're protected — and well-informed.
Spain remains one of the most desirable places in the world to invest, live, and enjoy a rich Mediterranean lifestyle. At La Boutique Luxury Real Estate, we’re committed to transparency, trust, and personalized guidance — through every policy change and market trend.
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