The Spanish government recently announced a groundbreaking proposal to impose a 100% tax on properties purchased by non-EU residents. This bold move, spearheaded by Prime Minister Pedro Sánchez, aims to address Spain’s ongoing housing crisis and prioritize affordable housing for residents. If you’re considering buying property in Spain, here’s what you need to know about this new property tax.
The proposed property tax targets non-EU buyers who purchase homes in Spain. It suggests a 100% tax on the property’s value, effectively doubling the purchase cost for these buyers. This unprecedented measure is part of Spain’s broader strategy to combat its housing affordability crisis and prioritize homes for residents.
Over the past decade, Spanish property prices have jumped by 48%. That’s massive – especially in hotspots like Javea. In 2023 alone, non-EU residents purchased 27,000 homes, many as investments rather than residences. This has driven up prices in regions like the Costa Blanca, making it increasingly difficult for locals to find affordable housing.
Prime Minister Sánchez emphasized that the proposal is essential to prevent the housing market from dividing society into “rich landlords and poor tenants.” Similar measures have been implemented in countries like Denmark and Canada, which also face housing shortages.
Learn more about the global housing crisis and property taxes on the BBC.
The new tax specifically targets non-resident, non-EU foreigners who live in Spain for less than 183 days per year. While it aims to prioritize homes for residents, critics argue it could deter foreign investment and harm the real estate market.
For example:
When buying property in Javea, stamp duty (known as ”Actos Jurídicos Documentados” or AJD) is an important cost to consider. In 2025, stamp duty rates typically range from 0.5% to 1.5% of the property price, depending on the region and specific property type. This tax is paid alongside other fees such as the property transfer tax (ITP) or VAT (IVA) for new builds. Understanding these costs can help buyers budget effectively for their investment in Spain.
Currently, taxes for property purchases depend on the region and type of property:
However, with the proposed tax, non-EU buyers could face a 100% tax on the property value. This means a significant financial burden for those looking to invest in Spain.
The proposed 100% property tax for non-EU buyers reflects Spain’s effort to tackle its housing crisis, but it raises questions about the future of foreign investment. As details about the law’s implementation remain unclear, prospective buyers should stay informed and consider alternative investment strategies.
Javea remains a top destination for its stunning sea views and Mediterranean lifestyle. No matter where you’re from, buying a home in Javea doesn’t have to be complicated. We’ll help you make sense of the numbers—and find a property that actually feels like home.”
