What You Need to Know…
Buying a property in Spain is a significant investment, and recent headlines about a proposed 100% tax on property purchases by non-EU nationals have raised concerns among many potential buyers.

While the announcement has stirred up debate, it’s important to look beyond the sensationalism and understand the context, implications, and feasibility of this proposal.
Here’s what you need to know.
What’s behind the 100% tax proposal?
The president of Spain, Pedro Sanchéz is currently facing political turbulence and corruption scandals and has made this proposal during a time of legislative stagnation and growing public discontent, with him, the property market, the economy and that’s not to mention his wife’s and brother’s dodgy business deals.

This negative public sentiment and probably his own party are pushing for an early general election, likely this summer, and to me the announcement appears to be more of a political strategy to win domestic votes, rather than a serious policy measure.
In Spanish politics, such bold declarations are often made to generate headlines rather than to be implemented.
Although I’m not a political follower nor commentator, it’s worth noting that Spain’s political climate frequently gives rise to these kinds of “political bravado” statements.
Will It Impact the Property Market?
In reality, this tax would have minimal impact on Spain’s property market, which is obviously what he’s trying to improve.
Of the approximately 540,000 property transactions each year, only about 27,000 involve non-EU buyers—less than 5% of the market.

Even if the proposal were to become law, it’s unlikely to significantly alter rising property prices or the broader real estate landscape.
Legal Hurdles Make It Unlikely
As always with these sorts of laws, the proposal faces significant legal and practical challenges.
As an EU member state, Spain is bound by principles such as the free movement of capital, goods, and services.
These principles are enshrined in foundational EU treaties and prohibit discriminatory policies targeting non-EU investments.
Maybe more importantly, EU law takes precedence over any country’s national law.
For example, Spain’s earlier attempt to restrict inheritance tax benefits to Spanish nationals was overturned by the European Court of Justice in 2014. A similar fate would almost certainly await this proposal if it were implemented.

What About EU Nationals?
If you hold an EU passport, this proposal will not affect your ability to purchase property in Spain. EU nationals enjoy protections under EU law that prevent discriminatory policies based on nationality or residency status.
Even if you’re living outside the EU, your rights to buy property in Spain remain intact.
Key Points to Consider:
- EU Citizenship: If you’re an EU citizen, regardless of residency, this proposed tax would not apply to you. Spain cannot legally discriminate against EU nationals.
- Non-Residents: The proposal is aimed at non-EU nationals and non-residents. However, even non-EU nationals with established residency in Spain may not be affected, depending on the final wording of any legislation.
- Legislative Process: For this tax to become law, it would need parliamentary approval. Given the current political landscape, it is unlikely to gain the necessary support.
- Implementation Timeline: No dates have been set for this proposal, further indicating that it is more of a political statement than a concrete policy plan.
Loads of smoke without fire
The proposal of 100% tax on non-EU property purchases is unlikely to materialize.
While it may serve him as a temporary political distraction, the negligible market impact and significant legal barriers make its implementation impractical.

If you’re an EU citizen or already a resident in Spain, you can rest assured that your property investments are not at risk.
At Tenerife Property Group, we stay up to date with all developments in the property market to provide you with accurate, relevant information.
If you have any concerns or questions about buying property in Spain, feel free to contact us.
We’re here to help make your property journey smooth and stress-free as we have for hundreds of buyers and sellers since 2010.