100% Tax on Non-EU Buyers | Status Nov 2026

Quick answer: Spain's 100% tax on property purchases by people living outside the EU is not in force as of 10 November 2026. It is a bill from the Socialist parliamentary group, registered in May 2025, which according to The Local had not been debated even once in Congress by the end of March 2026. Royal Decree 806/2026 of 5 October dissolved parliament and called a general election for 29 November, and bills that had not finished their passage through parliament lapse. Today, buying on the Costa Blanca costs what it always has: 9% transfer tax (ITP) on resale homes, and 10% VAT plus 1.4% stamp duty (AJD) on new builds.

What the 100% tax is, according to the official text

Its full name is the State Complementary Tax on the Transfer of Real Estate to Non-Residents of the European Union. It appears in the Bill to Promote Affordable Rental Housing, tabled by the Socialist Parliamentary Group and published in the Official Gazette of the Cortes Generales on 30 May 2025 (no. 229-1).

According to that text, the tax:

applies to purchases for consideration of property located in Spain, and to the creation or transfer of rights in rem over it;
falls on individuals and entities that are not resident in the European Union;
becomes due on the day of the transfer;
is calculated at a rate of 100% of the taxable base, which is the value of the property, as the text itself and tax advisers such as PwC and Grant Thornton describe it. On paper, a resale home would cost twice as much.

Who would fall within the text: residence counts, not the passport

The text refers to people who are not resident in the EU, not to nationalities. What decides whether you are in scope is where you live, not which passport you hold.

Buyer's situation	Would they fall within the 2025 text?
Lives in Spain, of any nationality	No
Lives in another EU country (Netherlands, Poland, Sweden, Lithuania, Germany…)	No
Lives in the United Kingdom	Yes
Lives in Norway or Switzerland	Yes
Lives in the United States, Canada or Latin America	Yes
EU citizen living outside the EU (for example a Pole living in the UK or Norway)	Yes, on the wording

This is a reading of the text tabled in 2025. A final version could change the definition or add exceptions.

A note on Norway: it belongs to the European Economic Area but not to the EU. Some advisers have warned that treating EEA residents differently could clash with the EEA Agreement.

Where it stands today: timeline

Date	What happened
13 January 2025	The Prime Minister announces a housing package that includes a 100% charge on purchases by non-EU residents
30 May 2025	The Socialist group registers the bill in Congress (BOCG no. 229-1)
January 2026	The government presents a new housing package with incentives for landlords who renew tenancies without raising the rent, and tighter limits on holiday lets and room rentals. According to The Local, the 100% tax was not the focus of that package
End of March 2026	According to the parliamentary records cited by The Local, the bill had not been debated: no readings, no committee, no plenary session
Early October 2026	Congress rejects several housing decrees and the government announces two new ones. According to The Local, the 100% tax is not among the measures
5 October 2026	Royal Decree 806/2026 dissolves Congress and the Senate and calls a general election for 29 November

What happens to pending bills when parliament is dissolved

When parliament is dissolved, bills that had not completed their passage lapse. For the 100% tax to come back, a new parliament would have to receive a new bill and take it through the process from scratch.

There is no serious way to know whether that will happen. This article does not rate any party or predict the election result. It sticks to what exists: a text that is not law, and an election calendar.

Does it fit with EU law?

Law firms and tax advisers have pointed out that a charge like this could clash with the free movement of capital (Article 63 of the Treaty on the Functioning of the EU), which also protects capital movements with countries outside the EU. That is an open legal debate, not a conclusion. If it were ever passed, it would be likely to end up in the courts.

What changes for you today if you buy on the Costa Blanca

Nothing. The tax does not exist, and buying costs are those in force in the Valencian Community:

Type of purchase	Tax	Current rate
Resale home	ITP	9% since 1 June 2026 (10% until 31 May). A higher rate applies to properties over one million euros
New build	VAT + AJD	VAT 10% and AJD 1.4% (1.5% until 31 May 2026)

On top of that come the notary, the land registry and the gestor, which depend on each deal: ask for a quote before signing. Our guide to the true cost of buying property in Spain has the breakdown.

If you plan to rent your home out, keep in mind that the new housing decrees are still in process and that the January 2026 package included tighter limits on tourist lets. Check where they stand with your adviser before you buy.

What to do if you live outside the EU and want to buy

Don't rush in out of fear of a tax that does not exist. It does not apply today and its future is uncertain.
And don't set up structures to avoid it either. Shell companies, or third parties who appear as the buyer to dodge a tax that has not even been approved, can create serious tax and legal risks. Talk to a lawyer before considering anything like that.
If you plan to move your residence to Spain, your situation changes. It is an immigration and tax matter: take specialist advice.
Lock down the terms properly. Hire an independent lawyer and go through the arras contract with them. The details are in our guide to reserva vs arras in Spain.
Follow the official sources (the BOE and the Congress website), not the headlines.

Frequently asked questions

Is the 100% tax on foreign buyers in force?
No. It is a 2025 bill that has not been approved. When parliament is dissolved, unfinished bills lapse.

When is the general election?
On 29 November 2026, according to Royal Decree 806/2026 of 5 October, which is listed on the website of the National Statistics Institute (INE).

Would it affect British buyers?
If the 2025 text were passed as it stands, it would affect people who live outside the EU, including the United Kingdom. A British citizen who lives in Spain would not be a non-resident of the EU. It is not in force today.

Would it affect Norwegians and Swiss buyers?
On the wording of the text, yes, because Norway and Switzerland are not EU members. In Norway's case, its fit with the EEA Agreement has also been raised. It is not in force today.

Would it affect Poles, Lithuanians or Swedes?
If they live in their own country, which is in the EU, they would not fall within the text. If they live in the UK or Norway, they would, on the wording.

I have signed arras or I'm about to. Should I worry?
There is no extra tax today. If something similar were ever approved, the transitional rules would depend on the final text and cannot be predicted. Ask your lawyer.

Where can I read the official text?
In the Official Gazette of the Cortes Generales, no. 229-1 of 30 May 2025, and on the INE website for the election calendar. The links are below.

Official sources

The official text we consulted is the one from May 2025. Some media have reported on later drafts, and the final wording could differ.

Want to see what is available? Browse properties in Torrevieja and properties in Guardamar del Segura, or get in touch.

This article is for information only and is not legal or tax advice. Always consult a qualified Spanish lawyer and tax adviser before making a purchase decision.

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