Spain's Socialist Party (PSOE) has submitted draft legislation introducing a 100% national tax on property purchases by non-EU, non-resident buyers. This proposal, part of Pedro Sánchez's January 2025 housing reforms, faces significant political and legal challenges.
This new proposed law adds to existing property transfer taxes, effectively doubling purchase costs:
Example:
Key Exemption: New-build properties remain unaffected as they fall under VAT rather than transfer tax.
The tax targets buyers based on tax residency, not nationality:
Affected: Non-EU tax residents, including Spanish citizens living outside the EU Exempt: EU tax residents regardless of nationality, new-build property buyers
PSOE lacks parliamentary majority and faces strong resistance:
The proposal faces constitutional and EU law obstacles:
Spanish Constitutional Issues:
EU Law Conflicts:
The proposal creates uncertainty despite not being law yet. Non-EU buyers might consider:
The proposal faces insurmountable barriers:
The law is NOT in force yet (and I doubt it ever will in these terms).
Non-EU buyers should stay informed, avoid panic decisions, and consult legal professionals. The proposal's survival in its current form appears unlikely given political opposition and legal constraints.
Spain's commitment to EU law and constitutional principles provides strong foundations for challenging discriminatory taxation, making this dramatic proposal more headline-grabbing than practically viable.
Watch my YouTube video for all the details.
