Spain’s Proposed 100% Tax on Non-EU Property Buyers: Where It Stands in 2026

Why the 100% Tax on Non-EU Buyers Matters Now

The 100% tax on non-EU buyers is a proposed Spanish state levy that would charge non-resident buyers from outside the European Union a tax equal to the value of the property they acquire, effectively doubling the cost of a purchase. Vicox Legal, an international law firm advising on crypto real estate and cross-border acquisitions in Spain and Portugal, receives questions about it from almost every non-EU client considering the Spanish market.

The measure was announced by Prime Minister Pedro Sánchez on 13 January 2025 as one of twelve housing measures. The government justified it with a single figure: in 2023, non-EU non-residents bought around 27,000 homes in Spain. Three months later, on 3 April 2025, Spain’s investor residence permit for real estate, the Golden Visa, ceased to exist under Ley Orgánica 1/2025. For buyers from the United States, the United Kingdom, the Gulf, Latin America and Asia, the two announcements together created a sense that Spain was closing its doors.

The legal reality is more nuanced. More than eighteen months after it was announced, the 100% tax remains a proposal without parliamentary progress, and the ordinary acquisition rules continue to apply. This guide sets out what the draft contains, where it stands in the legislative process, which buyers it would and would not affect, and how a non-EU investor, including one funding the acquisition with digital assets, can buy property in Spain today on a compliant footing.

Legal Framework: What the 100% Tax Proposal Contains

Under Spanish constitutional law, a new state tax can only be created by a law approved by the Cortes Generales (Article 133 of the Spanish Constitution). An announcement, a press release or a registered draft has no legal effect on a transaction until the law is approved, published in the Boletín Oficial del Estado (BOE) and in force.

According to the draft submitted to Congress in June 2025 and the reporting that accompanied it, the proposal has the following design:

• Taxable event: the acquisition of residential property in Spain by individuals who are neither EU nationals nor tax residents in Spain.
• Rate: 100% of the taxable base, levied as a state tax on top of the existing transfer tax framework.
• Scope: second-hand (resale) property. Reporting on the draft indicates that new-build property acquired directly from a developer, which is subject to VAT rather than the Impuesto sobre Transmisiones Patrimoniales (ITP), would fall outside the charge.
• Territorial scope: the Basque Country and Navarre, which operate their own foral tax systems, were reported as excluded from direct application.
• Exempt persons: EU and EEA nationals, and non-EU nationals who are already resident in Spain.

The same package included other housing measures, notably the application of 21% VAT to tourist apartments and short-term rentals.

Two legal questions surround the proposal and have been raised by practitioners. The first concerns EU law. Article 63 of the Treaty on the Functioning of the European Union (TFEU) prohibits restrictions on the movement of capital not only between Member States, but also between Member States and third countries. Article 64 TFEU permits some restrictions on direct investment involving third countries, including real estate, but the margin for introducing new ones is limited. The second concerns Spanish constitutional principles of equality and economic capacity (Articles 14 and 31 of the Constitution), given that the charge would depend on nationality and residence rather than on the value of the transaction. Neither question has been tested, because there is no law to challenge.

Legislative Status of the 100% Tax in 2026

The legislative status of the 100% tax is defined by one fact: it has not been debated in Congress. Parliamentary records showed that by March 2026 the measure had still not been submitted for debate, and it was left out of the housing reform package the government presented in January 2026.

The obstacle is arithmetic. The government governs in minority and depends on smaller parliamentary groups to pass legislation. Junts, the Catalan party whose votes are essential to most majorities, opposes the tax. Podemos has criticised it from the opposite direction, arguing that the government should ban non-residential purchases outright. Without either group, the proposal lacks a majority.

The wider housing debate has not stopped. In May 2026, the PSOE responded to a Sumar initiative to prohibit speculative home purchases with an alternative package that again referred to a tax on purchases by non-resident foreigners, alongside a levy on empty homes and higher taxation of SOCIMIs. Reporting on that package did not specify a rate. A government source has also said the 100% tax will continue to be raised in Congress.

For an investor, this means the proposal is dormant but not withdrawn. It could return as part of a new bill, in a modified form, or as an amendment to other housing legislation. Spain’s next general election must be held by 2027, and housing will be a central issue in that campaign.

Who Would Be Affected by the 100% Tax, and Who Would Not

The proposal would affect a narrow group of buyers. Two conditions must both apply: the buyer is not an EU or EEA national, and the buyer is not tax resident in Spain. A US citizen living in Madrid, for example, would not be affected under the draft. An EU passport holder living in Dubai would not be affected either.

The data shows how narrow the group is. According to the Registradores de la Propiedad, foreigners bought close to 97,300 homes in Spain in 2025, 13.8% of all transactions, compared with almost 93,000 in 2024. More than half of these buyers were EU citizens, and the share rises above 60% when other European nationals are included. British buyers remain the largest single foreign group. The highest concentrations of foreign buyers are in the provinces of Alicante, the Balearic Islands and Málaga.

Corporate acquisitions call for particular caution. Some commentary on the draft suggested that a Spanish company would be treated as resident and therefore outside the charge. Any final law would very likely include anti-avoidance provisions, and the Spanish tax authority already applies general anti-abuse rules under the Ley General Tributaria. A holding structure should be chosen for its own commercial, succession and tax merits, not only to avoid a tax that does not yet exist. Our analysis of Luxembourg wealth structuring with SOPARFI and SPF vehicles explains when a holding layer is justified.

Taxes Non-EU Buyers Actually Pay in Spain Today

The tax position of a non-EU buyer in Spain today is defined by the ordinary acquisition and holding taxes, which apply in the same way to residents and non-residents at the moment of purchase. The main difference arises once the property is held.

On acquisition

• Resale property, ITP: the Impuesto sobre Transmisiones Patrimoniales is set by each autonomous community within the framework of Real Decreto Legislativo 1/1993. General rates include 6% in Madrid, 7% in Andalucía and 10% in Catalonia and the Valencian Community, with higher brackets for high-value properties in some regions.
• New build, VAT + AJD: 10% VAT on residential property bought from a developer, plus Actos Jurídicos Documentados (AJD) on the deed, generally between 0.5% and 1.5% depending on the region.
• Notary, Land Registry and agency fees: regulated notarial and registry fees, plus legal fees.

While holding the property

• IBI: annual municipal property tax.
• IRNR (non-resident income tax): a non-resident owner of a property that is not rented out declares imputed income of 2% of the cadastral value, or 1.1% where the value has been revised, taxed at 24% for non-EU/EEA residents and 19% for EU/EEA residents, through Modelo 210. Rental income is taxed on the gross amount for non-EU residents.
• Wealth tax and Temporary Solidarity Tax on Large Fortunes: non-residents are taxed on assets located in Spain above the applicable thresholds.

On sale

• Capital gains: taxed at 19% for non-residents, with a 3% withholding that the buyer retains and pays to the tax authority on account of the seller’s tax.
• Plusvalía municipal (IIVTNU): municipal tax on the increase in land value, normally paid by the seller.

How a Non-EU Purchase Works Today, Step by Step

A non-EU property purchase in Spain follows the same legal sequence as any other acquisition, with additional attention to identification, the origin of funds and, where relevant, the conversion of digital assets into euros. The process involves seven stages:

1. Wallet and source-of-funds verification — Before any offer is signed, counsel reviews where the purchase money comes from. For crypto holders, this means documenting wallet ownership, acquisition history and the on-chain path of the funds, so the origin can be explained to a bank and a notary.
2. AML/KYC validation of the investor — The buyer obtains a Número de Identidad de Extranjero (NIE) and provides identity, residence and beneficial ownership documentation. Politically exposed persons and corporate buyers are subject to enhanced due diligence.
3. Preparation of legal documentation — Counsel obtains the nota simple from the Land Registry, checks charges, mortgages, urban planning status and community debts, and negotiates the arras contract with clauses on payment method, timing and conversion risk.
4. Crypto-to-fiat conversion through a regulated provider — Where the buyer funds the purchase with digital assets, they are converted into euros through a regulated crypto-asset service provider and transferred to a Spanish or EU bank account, with a full documentary trail. The deed records a fiat payment.
5. Notarial execution (escritura pública) — The buyer and seller sign the public deed before a Spanish notary, who verifies identities, the means of payment and the beneficial owner, and records them in the deed.
6. Tax settlement (ITP or VAT + AJD) — The buyer files and pays ITP, or AJD for new builds, normally within 30 working days of the deed, through the relevant regional tax office.
7. Land Registry inscription — The deed is presented to the Registro de la Propiedad. Inscription under the Ley Hipotecaria gives the buyer’s title full protection against third parties.

AML/KYC Compliance for Non-EU Buyers

AML compliance in a Spanish property transaction is the set of checks that obliged entities must carry out under Ley 10/2010, of 28 April, on the prevention of money laundering and terrorist financing. Notaries, property registrars, real estate agents, banks and lawyers involved in the transaction are all obliged entities. The supervisory authority is SEPBLAC, the Executive Service of the Commission for the Prevention of Money Laundering.

KYC and AML are related but distinct. KYC (know your customer) is the identification of the buyer and the beneficial owner. AML is the broader assessment of whether the transaction and the funds are consistent with the client’s profile. A non-EU buyer can pass KYC with a valid passport and NIE and still face an AML problem if the origin of the money is not documented.

Acceptable evidence of source of funds includes:

• Bank statements showing the accumulation of the funds over time
• Employment contracts, payslips, tax returns or dividend records
• Sale deeds for previous property or company disposals
• For digital assets: exchange account statements, transaction histories, wallet attribution evidence and tax returns declaring the gains

Problematic sources include funds routed through unregulated exchanges, mixers or privacy protocols, unexplained transfers from third parties, and cash. Where the notary cannot verify the means of payment or detects risk indicators, they must refrain from authorising the deed and report the operation to SEPBLAC. Under Ley 10/2010, movements of cash or bearer instruments of €10,000 or more into or out of Spain must be declared using form S-1.

The General Council of Notaries (Consejo General del Notariado) operates a centralised prevention body (OCP) that supports notaries in identifying beneficial owners and risk patterns, which makes Spanish notarial control among the most systematic in Europe.

Crypto-Funded Purchases by Non-EU Investors

A crypto-funded property purchase in Spain is an acquisition in which the buyer’s wealth is held in digital assets and converted into euros before the deed is signed. The 100% tax proposal does not change this structure. It targets the buyer’s nationality and residence, not the origin of the funds. A non-EU investor who qualifies for the exemptions would not pay the surcharge whether the money came from crypto, salary or the sale of a company.

What has changed in 2026 is transparency. Since 1 January 2026, Council Directive (EU) 2023/2226 (DAC8) requires crypto-asset service providers to collect and report information on their users’ transactions to tax authorities, with exchanges between EU authorities and, through the OECD Crypto-Asset Reporting Framework, with many third countries. The MiCA Regulation (EU) 2023/1114 also requires crypto-asset service providers operating in the EU to be authorised. For a buyer, this means the conversion of digital assets will be visible to tax authorities, so it is important to declare the gain correctly in the country of residence before or alongside the purchase.

The conversion of crypto into euros is normally a taxable event in the investor’s country of tax residence, not in Spain, when the investor is non-resident. Double taxation treaties signed by Spain determine which country can tax which income, and the treaty with the investor’s country of residence should be reviewed before the conversion. Founders and family offices deploying liquidity after a disposal will find our guide on post-crypto exit real estate and wealth structuring in Spain relevant.

Risk Mitigation and Due Diligence

Risk mitigation in a non-EU acquisition is the identification and contractual allocation of the risks that could delay, increase the cost of or block the transaction. In the current environment, these risks include:

• Legislative timing risk: if a non-resident surcharge were approved, the decisive date would be the accrual date defined by the law, usually the date of the public deed. A private contract signed earlier may not protect the buyer. Arras contracts should include a clause allowing termination or renegotiation if a new tax applicable to the buyer comes into force before completion.
• Exchange rate and volatility risk: buyers funding the purchase in digital assets or in a non-euro currency should convert the funds, or hedge them, before the arras deposit commits them to a fixed euro price.
• Notarial refusal risk: a deed can be refused if the means of payment or the beneficial owner cannot be verified. This is avoided by preparing the source-of-funds file in advance.
• Unregulated exchange risk: funds coming from platforms without authorisation in a recognised jurisdiction are likely to be rejected by Spanish banks.
• Mixed-funding risk: payments partly in fiat and partly from crypto conversions need a reconciled trail for each tranche.
• Property due diligence: registry charges and mortgages, cadastral consistency, the building inspection report (ITE/IEE), the occupancy certificate (cédula de habitabilidad or equivalent), the energy certificate, tourist licence status and community debts.

Pre-transaction legal advice is the most effective way of managing these risks. Most delays in non-EU acquisitions arise from documentation gaps identified at the notary, when they could have been resolved weeks earlier.

Scenarios: If the Tax Passes, Stalls or Is Redesigned

Scenario planning is the most useful tool for a non-EU investor facing an uncertain tax proposal. Vicox Legal does not predict legislative outcomes, but three scenarios frame the decision.

For investors planning a move, tax residence in Spain would remove them from the scope of the draft and changes their entire tax position, including worldwide income, wealth tax and reporting obligations. Residence should therefore be decided on its own merits. Spain’s special regime for inbound workers, the Beckham Law, and Portugal’s IFICI regime are relevant alternatives. Our analysis of moving to Portugal in 2026 and the IFICI regime compares the Portuguese route.

Pre-Transaction Checklist for Non-EU Property Buyers in Spain

• Confirm your tax residence and nationality status and whether any proposed surcharge could apply to you.
• Obtain your NIE before committing to any reservation or arras payment.
• Compile a source-of-funds file covering every tranche of the purchase price.
• For digital assets, export full exchange histories and wallet attribution evidence, and confirm the provider is authorised.
• Declare the gain from any crypto-to-fiat conversion in your country of residence and keep the filing.
• Review the double taxation treaty between Spain and your country of residence.
• Obtain a recent nota simple and check charges, mortgages and the registered description.
• Verify urban planning status, occupancy certificate, ITE/IEE and community debts.
• Include arras clauses covering legislative tax changes, conversion timing and payment method.
• Decide between personal ownership and a corporate structure based on succession, rental and tax objectives.
• Budget ITP or VAT + AJD, notary, registry and legal fees, plus annual IRNR and IBI.
• Appoint a fiscal representative or adviser to file Modelo 210 every year.

Frequently Asked Questions

For investors who want to compare structures across jurisdictions, our real estate practice and tax residency practice advise on acquisitions, residence planning and ongoing compliance in Spain, Portugal and Luxembourg.