Spain’s government has taken decisive steps to limit foreign speculation in the housing market, targeting non-EU buyers who do not reside in the country.
Golden Visas Already Abolished
In November 2024, Spain officially abolished the so-called “golden visa” program, which had allowed foreigners to gain residency by purchasing real estate worth at least €500,000. The government argued that this program encouraged speculation and distorted housing prices in many urban and coastal areas.
A New Complementary Property Tax Proposal
In May 2025, the Socialist government introduced a proposed law that would create a new “Complementary State Tax on the Transfer of Real Estate to Non-EU Residents.”
- Who would be affected?
The measure specifically targets non-EU individuals and companies who are not resident in Spain. EU/EEA citizens (such as French, German, or Italian nationals), even if not resident, would be exempt.
- How would it work?
The tax would apply to any purchase of Spanish property by non-EU non-residents, with the tax base calculated on the highest of three values: the cadastral reference value, the declared price, or the market value
- Tax rate:
The bill sets a 100% rate on this base, effectively doubling the acquisition cost for the affected buyers. The amount paid for existing regional property transfer taxes (ITP/AJD) would be deductible against this new national tax.
- Exemptions:
Transactions subject to VAT (such as new builds purchased directly from developers) would generally not be subject, unless the VAT was exempt. Professional real estate operations by companies acting within their business activity would also be excluded.
Government’s Justification
Prime Minister Pedro Sánchez has stated that the goal is to prevent housing from being treated as a “mere financial asset” by speculative investors, particularly in tourist hotspots where local residents struggle to afford housing. The government argues that by curbing non-resident non-EU demand, pressure on prices will ease, and housing access will improve.
Current Legal Status
- The abolition of golden visas is already in force.
- The new complementary tax has not yet been approved. It remains a parliamentary bill under debate in the Spanish Congress. It will need to go through committee discussions, possible amendments, and a final vote before becoming law.
What It Means Today
- EU citizens: unaffected, regardless of residency.
- Non-EU residents in Spain: unaffected (as long as they are legal residents).
- Non-EU non-residents: potentially facing severe new costs if the law is passed, but as of today (October 2025), the measure is not yet in force.
In short: Spain has already ended residency-by-investment schemes, and is now moving toward one of Europe’s strictest restrictions on non-EU foreign property purchases. But the proposed 100% tax on non-resident non-EU buyers is still under parliamentary discussion — not yet law.
