Has Spain's 100% tax on non-EU buyers become law?

No. As of September 2026 it remains a legislative proposal (a 'proposición de ley') that has not even been formally debated in Congress, some 16 months after submission. It has not been passed, and no implementation date has been set.

Who would the proposed tax apply to?

As drafted, it targets individuals and entities not resident in the European Union buying second-hand residential property in Spain. New-build purchases subject to VAT, and purchases by businesses in the course of their economic activity, are excluded from the current draft.

Does the proposal affect Gulf investors buying new-build property in Spain?

As currently drafted, new-build property subject to VAT falls outside the scope of the proposed tax. It targets resale (second-hand) property transactions specifically.

Will Spain Really Tax Non-EU Buyers 100%? What Gulf Investors Need to Know (2026)

Current legal status

Not law, and further stalled than a year ago. This remains a legislative proposal ("proposición de ley") submitted by Spain's governing party in May 2025. As of September 2026, it has not been formally debated in Congress — no committee reading, no plenary discussion, zero votes — some 16 months after submission. The government's own January 2026 housing package did not include it as a headline measure. It has no confirmed implementation date and would still require a parliamentary majority it does not currently have.

Where this came from

In January 2025, Spanish Prime Minister Pedro Sánchez announced a package of housing-affordability measures, including a proposal to apply a complementary state tax of up to 100% on property acquisitions by individuals or entities not resident in the European Union. The stated aim was to curb speculative buying amid a domestic housing affordability crisis, not to target any particular nationality or region.

By mid-2025, the proposal had been formally drafted as the "Impuesto Complementario Estatal sobre la Transmisión de Bienes Inmuebles a No Residentes de la Unión Europea" and referred to the Congress of Deputies for debate. As of September 2026, it has still not progressed to a first reading, let alone a vote — an Idealista/news report from January 2026 explicitly listed it among the government's announced housing measures that had gone unfulfilled a year after being announced.

What the draft actually says

Based on the text presented to Congress, the proposal is narrower than the "100%" headline suggests:

It targets resale property. The draft applies only to second-hand (existing) residential property transactions — not new-build purchases, which are subject to VAT and fall outside its scope as written.
It excludes business activity. Purchases by companies or professionals in the course of their economic activity are explicitly excluded from the current draft.
It applies to non-EU residents specifically — not to EU citizens, and not to non-EU buyers who already hold Spanish tax residency.
The rate is a ceiling, not a flat charge. The draft sets the applicable rate at up to 100% of the property's value as a complementary tax on top of existing transfer tax (ITP), which itself varies by region between roughly 6–10%.

Why it may not pass — and why that's not the whole story

Industry analysts have raised real doubts about the proposal. Antonio de la Fuente, general director at Colliers, described the 27,000 annual non-EU purchases the measure targets as "a drop in the ocean" relative to Spain's ~26 million housing stock — suggesting the measure would do little to solve the underlying affordability problem it aims to address. Passing it also requires a parliamentary majority that Spain's minority coalition government does not currently command.

That said, dismissing it entirely would be a mistake. Even without becoming law, the proposal has already introduced measurable uncertainty into the market — and serious buyers should track its status rather than assume it will quietly disappear.

What this means if you're a Gulf investor today

In practice, for a Gulf-based buyer considering Spain right now:

New-build property — which is where most of the current wave of Gulf investment into Costa del Sol and Marbella is concentrated — sits outside the current draft's scope.
Nothing changes today. No tax has been enacted; existing transfer tax rates (6–10% depending on region) remain what applies.
The sensible approach is to structure any acquisition with this proposal in view, not in fear of it — and to revisit the legal position at the point of signing, since legislative status can shift with little notice.

Frequently asked

Has this become law?

No. It remains a proposal under Congressional debate with no passage date confirmed.

Does it affect new-build purchases?

As drafted, no — new-build property subject to VAT is excluded from its current scope.

Does it affect buyers who already own property in Spain?

The draft targets the transaction of acquiring property, so existing owners are not retroactively affected by a measure that has not yet passed.

Sources

Associated Press, "Spain considers a 100% tax on homes bought by foreigners," January 2025
The Objective, "PSOE impuesto extranjeros vivienda," May 2025 — text of the draft proposal
El Independiente, "Nuevo impuesto que grava inversiones inmobiliarias de no residentes fuera de la UE," June 2025
Financial Times, via Bolsamanía — commentary from Antonio de la Fuente (Colliers), January 2025
Euronews, "Quiere mudarse a España: cuidado con el nuevo impuesto sobre la propiedad," January 2025
Idealista/news, "Sánchez anuncia más medidas en vivienda, pero con otras sin cumplir un año después," January 2026
Congreso de los Diputados, public parliamentary records — no reading or vote recorded as of September 2026

This page is for general information only and does not constitute legal or tax advice. Legislative proposals can change without notice; always confirm the current legal position with a qualified Spanish tax advisor before making a purchase decision. Last verified against public sources 27 September 2026 (Congreso de los Diputados records, Idealista/news).