Plans by Pedro Sánchez to introduce up to a 100% property tax for purchases by non-EU buyers appear to have stalled, leaving the proposal in political limbo for now.
First announced in January 2025, the idea sparked strong reactions both in Spain and abroad. It aimed to place a heavy tax burden on non-EU residents, including British buyers, in an effort to cool demand and make housing more accessible for locals.
A proposal shaped by housing pressure
The government put forward the plan at a time of growing concern over housing affordability. In popular areas such as the Costa Blanca, strong demand from international buyers has continued to push prices upward.
At the same time, Spain remains one of the world’s most visited countries, second only to France. As a result, the rise in holiday rentals has added further strain on available housing.
Reports suggest rental availability has halved since the pandemic. Meanwhile, non-EU buyers purchased around 27,000 properties in 2023. In addition, there were approximately 321,000 registered holiday rentals by late 2024, a figure that has grown steadily in recent years.
Spain’s 100% property tax proposal
When the proposal was first announced, it quickly made international headlines. Many British buyers and other non-EU nationals expressed concern about what it could mean for future property purchases.
In response, Sánchez stated that the intention was to discourage speculative buying, arguing that some properties were being purchased as investments rather than homes.
Consequently, uncertainty spread across key destinations such as the Costa Blanca, the Costa del Sol and the Balearic Islands, all of which attract large numbers of foreign buyers.
No movement in parliament
However, despite the attention and debate, the proposal has not progressed. Parliamentary records show that, as of March 2026, it has yet to be formally discussed.
This lack of movement suggests the plan may face political hurdles before any real progress can be made.
What it means for buyers now
For the moment, nothing has changed for non-EU buyers. British expats and other international purchasers can still buy property in Spain under the current rules.
