Spain Non-EU Property Tax in 2025: What Buyers Need to Know

If you’re thinking about buying property in Spain, you’re not alone. Spain’s sun-soaked beaches, vibrant culture, and laid-back lifestyle make it a top choice for international buyers year after year. In fact, foreign buyers made up around 20% of all property transactions in 2024 — and that number keeps growing! Places like the Mediterranean coast, including Cataluña, Valencia, and Andalusia, are especially popular hotspots.

But with so many people from outside the EU looking to snap up homes here, tax rules for non-EU buyers have become a hot topic in 2025. There’s been talk about new taxes aimed at cooling down the market, like that much-discussed 100% tax on property purchases by non-EU citizens — though that’s still just a proposal, not law.

So, there’s been a lot of buzz in 2025 about a brand-new tax that could seriously change the game for non-EU buyers looking to invest in Spanish real estate. The Spanish government proposed a shocking idea: a 100% tax on the purchase price for non-EU, non-resident individuals buying resale properties. Yep, you read that right — it could mean doubling the cost of your dream home overnight.

But before panic sets in, here’s the catch: this hefty tax is still just a proposal. It hasn’t become law yet and is being debated in parliament. The aim? To cool down the property market, reduce speculation from foreign investors who don’t live in Spain, and help locals get better access to housing.

Also, there’s a big exception — if you’re buying a new build or off-plan property, this 100% tax doesn’t apply. New properties are taxed differently under VAT, so off-plan buyers have a safer route to avoid this potential surcharge.

And it’s important to note that this tax doesn’t touch EU buyers at all — it’s focused squarely on non-EU, non-resident buyers from countries like the UK, US, Canada, China, and beyond.
While this proposal has sparked a lot of controversy and has legal hurdles to cross, it’s something non-EU buyers absolutely need to keep an eye on in 2025.

So, what’s the status of this 100% tax proposal, and how seriously should non-EU buyers take it? The truth is, while the idea has made big headlines, it’s still very much a draft bill under parliamentary review. Spain’s Socialist Party (PSOE) formally introduced the legislation in May 2025 with the goal of slowing down foreign speculation and making housing more affordable for locals.

The proposed tax, officially called the “Complementary State Tax on the Transfer of Real Estate to Non-EU Residents,” would double the existing regional transfer taxes. That means if you were already paying, say, 10% transfer tax on a resale property, you’d have to pay nearly that amount again—effectively doubling your tax bill on top of the property price.

However, this proposal faces significant hurdles. Many legal experts warn that a 100% tax could be deemed unconstitutional under Spanish law, as it might violate principles against confiscatory taxation. On top of that, EU law raises questions about discrimination, since non-EU buyers would be targeted in a way EU and European Economic Area (EEA) citizens are not. The European Court of Justice has a history of striking down similar discriminatory tax measures.

Politically, the bill still needs support from coalition partners, and several regions like the Basque Country and Navarre have tax autonomy and may not apply this measure. As such, while the bill could pass, it may be amended or delayed extensively.

Now that we’ve covered the big proposed tax that’s got everyone talking, let’s zoom in on the real taxes non-EU buyers are already dealing with in Spain today.

➡️ Transfer Tax (ITP)
When you buy a resale property (not a new build), you’ll pay the Transfer Tax (Impuesto de Transmisiones Patrimoniales or ITP). This varies depending on the region but typically ranges between 6.5% and 10% of the property price. So, if you’re eyeing a €300,000 apartment in Valencia, expect to pay somewhere around €18,000 to €30,000 just in this tax.

➡️ Non-Resident Income Tax on Rental Income
If you're planning to rent out your Spanish property, you’ll owe a 24% flat tax on the rental income if you’re non-EU and non-resident. Unlike residents, you don't get many deductions here, meaning you’ll pay tax on the full rental amount.

➡️ Wealth Tax and Local Property Taxes
Owning property in Spain also means dealing with wealth tax if your assets in Spain are worth more than €700,000. Plus, there’s the yearly IBI tax, a municipal property tax charged by your local town hall, usually around 0.4% to 1.1% of the cadastral value (often lower than market value).

➡️ Capital Gains Tax When Selling
If you sell your property, a flat 24% capital gains tax applies to profits for non-EU residents. So, make sure to keep good records of your purchase price and improvement costs to lessen your taxable gain.

If you’re a non-EU buyer excited about investing in Spanish property, here’s the good news: despite the buzz about new taxes and regulations, buying in Spain remains totally doable—with the right preparation.

✔️ Get Your NIE Number
First things first, you’ll need a NIE (Número de Identificación de Extranjero). This foreigner identification number is your golden ticket to any financial activity in Spain, including buying property. Without it, you can’t open a bank account or even sign contracts.

✔️ Open a Spanish Bank Account
Once you have your NIE, opening a bank account in Spain will make things much easier. You’ll need it to manage payments for the property, pay taxes, utility bills, and other expenses. Many banks also offer mortgage options to non-residents, typically lending up to 70% of the property’s value.

✔️ Hire Local Experts
Spain’s property market might seem straightforward, but it’s important to work with good lawyers, tax advisors, and real estate agents. They’ll help guide you through legal checks (due diligence), contracts, tax filings, and ensure everything is transparent and secure.

✔️ Consider New Builds or Off-Plan Properties
Since the proposed 100% tax currently targets resale homes bought by non-EU buyers, new builds and off-plan purchases remain exempt and can be a smart way to side-step extra taxes while grabbing modern, energy-efficient properties.

✔️ Be Ready for Additional Costs
Remember, buying property in Spain isn’t just about the price tag. Budget around 10-15% extra beyond the purchase price for:

• Transfer or VAT tax
• Notary and registration fees
• Lawyer and agency fees

✔️ Keep Up With Legal Developments
Since tax laws and regulations targeting non-EU property buyers are evolving fast, staying informed is key. Make sure you’re reading trustworthy sources or working with advisers who keep tabs on the latest legal changes.

Navigating the world of Spain non-EU property tax can feel tricky with all the headlines and proposals swirling around. The key takeaway? While the Spanish government has proposed a 100% tax on property purchases for non-EU buyers, this is still a draft law under debate and not yet in effect. So, if you’re planning to buy a home in Spain, there’s no immediate need to panic.

That said, non-EU buyers definitely face a variety of existing taxes — from transfer taxes on resale homes to annual local property taxes and income taxes on rental income. Being well-prepared with your NIE number, working closely with experienced local advisors, and considering new builds or off-plan options can help you avoid surprises.

The tax landscape for non-EU buyers in Spain is evolving, so staying informed and proactive is the best way forward. Whether you want a holiday home, a rental investment, or a forever place in the sun, understanding the details of Spain’s property tax system will make your purchase smoother and more confident in 2025 and beyond.