In recent days, headlines have been dominated by Spanish Prime Minister Pedro Sánchez’s proposal to introduce a 100% property tax on non-EU buyers who are not residents of Spain. The announcement, made as part of a broader strategy to tackle the country’s housing affordability crisis, has sparked widespread concern among international property investors. However, before jumping to conclusions, it’s important to take a closer look at the situation and assess the likelihood of this drastic measure becoming reality.
What Does the Proposal Involve?
Pedro Sánchez’s proposal is just one of 12 measures aimed at improving housing accessibility in Spain. The 100% property tax for non-EU buyers is intended to curb speculative property purchases that drive up prices, particularly in desirable coastal and urban areas. Alongside this, the government is exploring other initiatives, such as increasing taxes on holiday rentals, refurbishing vacant homes, and expanding the availability of social housing. Non-EU buyers, including British citizens post-Brexit, represent a significant portion of Spain’s international property market. In 2023, over 27,000 properties were purchased by non-EU residents, often as investment opportunities rather than primary residences. Sánchez’s government argues that reducing foreign investment in property could help stabilise prices and improve access for local residents.
Why Is This Unlikely to Happen?
While the headlines sound alarming, there are several reasons why this proposal is highly unlikely to materialise into law.
It’s Just a Proposal, Not a Policy
At this stage, the 100% property tax is merely an idea presented by the Spanish government. Proposals like this are often floated to gauge public and political reaction before moving forward. It is by no means a done deal.
Parliamentary Approval Is a Major Hurdle
For the proposal to become law, it would need to pass through the Spanish parliament, where Pedro Sánchez’s government does not hold a majority. Given the coalition’s dependence on support from other parties, achieving consensus on such a controversial measure would be exceptionally challenging. Many opposition parties have already voiced concerns about the potential negative impact on Spain’s property market and broader economy.
The Proposal Faces Strong Criticism
Critics argue that non-EU buyers account for a relatively small percentage of Spain’s overall housing market and are unlikely to be the primary cause of rising property prices. Moreover, implementing such a tax could deter foreign investment, harm Spain’s reputation as a welcoming destination, and negatively impact related industries such as tourism and construction.
Legal and Economic Implications
A 100% tax targeting non-EU buyers could face legal challenges for being discriminatory and violating international agreements. Additionally, the economic fallout of such a measure could be significant, potentially reducing foreign capital inflow and property demand in key regions such as the Costa del Sol, Balearic Islands, and Canary Islands.

Reassurance for Buyers
While the proposal has raised concerns, it is important to stay calm and consider the broader context. Spain’s property market remains a robust and attractive option for international buyers, offering excellent value compared to other European markets. Coastal regions and major cities continue to be hotspots for investment and holiday homes, and it is unlikely that the government would risk alienating such a vital segment of the market. Additionally, Spain’s legal and regulatory framework provides substantial protection for property buyers. Even if changes to taxation policies were to occur, they would not apply retrospectively, meaning that existing property owners are unlikely to be affected.
Why Choose Verdin Property?
If you are considering purchasing property in Spain, it’s always wise to stay informed and consult with trusted legal and financial advisors. This is where Verdin Property stands out as an invaluable resource. With their unmatched expertise in the Spanish real estate market, Verdin Property has a reputation for providing discreet, honest, and knowledgeable guidance to both experienced investors and first-time buyers. They understand the complexities of the market and are perfectly positioned to help you navigate any challenges with confidence.
For now, the best course of action is to monitor developments while keeping in mind the many barriers this proposal faces. The Spanish property market has weathered many challenges over the years, and it remains one of the most popular destinations for international buyers seeking sunshine, lifestyle, and investment opportunities. Verdin Property’s team of professionals can provide the personalised support you need to secure your dream home or investment property in Spain. Their deep understanding of market trends ensures that you make informed decisions, no matter how the regulatory landscape evolves.
Final Thoughts
While the idea of a 100% property tax for non-EU buyers has certainly captured attention, it is highly unlikely to become a reality. The proposal faces significant political, legal, and economic challenges that make its implementation improbable. For now, Spain remains an excellent destination for property investment, and buyers can continue to take advantage of its many opportunities with confidence. If you’re thinking about buying property in Spain, don’t hesitate to reach out to Verdin Property, your trusted partner in finding the perfect property and navigating the process seamlessly.