Spain’s plans for 100% property tax – where do things stand 8 months later?
Eight months have passed since the Spanish government first announced its proposal for a 100% property tax targeting non-EU buyers, and the situation is still very much in flux. While this announcement initially caused concern among foreign buyers, no law has yet been passed, and the proposal remains under discussion. Over the past months, there have been no significant moves in parliament to implement the tax, and legal experts continue to raise questions about its constitutionality and compliance with EU treaties.
In this update, we’ll take a closer look at what has changed, including political debates, legal challenges, and clarifications around which properties would be affected. We’ll also cover what hasn’t changed, so you can understand the current reality for non-EU buyers and plan your next steps accordingly. If you’ve been following this story, this is where things stand today – and why it still matters if you’re considering buying property in Spain.
What’s the current status of the proposal?
As of September 2025, the so-called 100% property tax remains exactly that – a proposal. It has not been passed by parliament, and at this stage, there are several legal and political hurdles standing in its way. Experts continue to raise questions about whether the tax would be constitutional, whether it might unfairly discriminate against non-EU buyers, and whether it complies with EU law. In short, while the idea is on the table, it is far from becoming a reality.
For now, non-EU buyers are not required to pay this tax, and the usual rules still apply. This includes the existing non-resident property tax, which is generally around 24% of the property’s fiscal value. So, while the proposal has made headlines, it hasn’t changed the immediate situation for buyers.
Scope and clarifications
There are some important details to understand if you’re thinking about buying a property in Spain. The draft legislation would only apply to second-hand properties, meaning off-plan homes would be unaffected. EU residents and businesses already subject to VAT would also be exempt. While the government has suggested that the tax could reach 100% of the property value, the details are still being debated. This means the final figure, if the law ever passes, could be lower – and it’s not yet clear exactly how it would work in practice.
Political and legal outlook
The Spanish government’s coalition is still in a minority position in parliament, which makes it uncertain whether the proposal will ever pass in its current form. Opposition parties continue to voice strong criticism, and legal challenges are expected if the tax moves forward. In reality, any law could be heavily amended, delayed, or even blocked entirely, so it’s important to remember that what you’re reading now may not be the final picture.
What this means for buyers
If you’re considering buying a property in Spain, the main point is that the situation is still very uncertain. The 100% property tax is not yet in effect, but there’s increasing pressure on the government to take steps to make housing more affordable for locals. For potential buyers, this is a reminder that timing could be important.
So if this is you, seek guidance early. An experienced, English-speaking solicitor, like those on our team at Gascon Bernabeu, can help you understand the tax implications and any potential changes.
It’s probably also best to think about acting sooner rather than later, especially if you’re looking at second-hand properties in high-demand areas like Marbella, Barcelona, or Ibiza. Moving before any new rules are introduced could save complications later. Either way, the best thing you can do is keep your eye on the news.
Need some professional guidance from an English-speaking solicitor?
At Gascon Bernabeu, our team is keeping a close eye on these developments. We can help you navigate the Spanish property market, explain the current rules and potential future taxes, and guide you through the legal process so you can make informed decisions with confidence.
Whether you’re actively looking to buy or simply planning ahead, we’re here to help you understand how these proposals could impact your property plans in Spain. You can reach us through our website form, email at info@gbabogados.co.uk, WhatsApp, or by phone at +44 (0)20 3137 1320.