Spain's proposed 100% tax on non-EU buyers: what actually happened and what buyers pay in 2026

Published 29 June 2026 · Updated 3 July 2026

Why everyone talked about a 100% tax in January 2025

On 13 January 2025 Prime Minister Pedro Sanchez announced a proposal to tax property purchases by non-resident, non-EU buyers at "up to 100%". The phrase generated headlines and immediate uncertainty among buyers, sellers and agents on the Costa del Sol.

Did that proposal become law?

No. As of July 2026 it is NOT law. The bill was never formally debated in Congress, no version has been voted on, and it was left out of the government's January 2026 housing package. In March 2026 it was widely reported as stalled for lack of parliamentary support. Any future revival would require parliamentary approval and would come with an effective date.

So what do non-EU buyers actually pay in Andalucia in 2026?

Ignore the headlines and look at the concrete figures that affect transaction costs. In Andalucia today the main taxes are these:

• Resale property - 7% ITP (transmission tax) on the purchase price
• New-build property - 10% IVA plus 1.2% AJD (stamp duty) on the purchase price
• Notary and registry fees - roughly 1-2% of the purchase price

These are the practical charges buyers should budget for when planning a purchase in Andalucia. Confirm the current figure with your lawyer or tax advisor before signing contracts, because tax rules can be updated.

Does buying property still give residency or a Golden Visa?

The Golden Visa route tied to property purchases ended on 3 April 2025. Buying property no longer grants residency. Non-EU visitors who do not hold residency remain subject to Schengen rules - they can stay 90 days in any 180-day period.

Can non-residents still buy on the Costa del Sol?

Yes. Non-residents remain fully entitled to buy Spanish property, and foreign demand on the Costa del Sol stayed strong through 2025-2026. The end of the Golden Visa changed immigration incentives, but it did not remove the right to acquire real estate.

What the headlines got wrong - and what they got right

Right - the government announced a proposal that mentioned a maximum tax level of "up to 100%" on 13 January 2025. Wrong - that proposal was never enacted and by July 2026 it remained outside the law-making process. The practical effect for buyers in Andalucia is not a 100% levy but the taxes listed above.

Practical checklist for buyers on the Costa del Sol

If you are buying as a non-EU buyer in 2026, here are concrete actions to protect your budget and timeline. These are practical steps rather than legal certainties - check each with a local professional.

Step	Why it matters
Confirm whether the property is new or resale	New builds attract IVA plus AJD; resales attract ITP - the tax regime affects total cost
Budget for taxes and fees	Plan for 7% ITP on resales or 10% IVA + 1.2% AJD on new builds, plus roughly 1-2% in notary and registry fees
Get a written tax estimate from your lawyer	Local tax practice and additional charges can affect the final cost - have the estimate before signing
Allow time for administrative steps	Transfers, notarising and registry entries take weeks - build realistic timelines into offers
Ask the agent for recent comparable sales	Market prices and demand inform negotiation - Costa del Sol remained attractive through 2025-2026

How agents and sellers should respond to client questions

Agents on the Costa del Sol should lead with verified facts and local costs. State the current tax position clearly and cite the dates of important events - for example the 13 January 2025 announcement and the 3 April 2025 end of the Golden Visa. Remind clients that as of July 2026 the proposed 100% tax was not law and that any revival would need parliamentary approval and an effective date.

Provide clients with an itemised cost sheet for each property showing purchase price, the applicable tax regime (ITP or IVA + AJD) and estimated notary and registry fees. When in doubt, advise them to consult a local lawyer or tax specialist to confirm up-to-date figures.

Negotiation and pricing - what sellers should consider

Sellers should not assume buyers are going to be hit by extraordinary new levies. The announcement attracted fear, which briefly affected sentiment, but the absence of a law means transactions are continuing under the usual tax rules. Price reasonably and present clear net proceeds calculations after the taxes listed above.

What happens if the government revives the proposal?

Any future revival of the proposal would require parliamentary approval and would come with an effective date. That means a new bill would need to be formally debated and voted on. If a new measure were passed, it would normally specify when the change becomes effective, which gives some time for buyers and sellers to react. Until such a law is approved and published, the current tax framework applies.

Common misconceptions agents should correct immediately

• Misconception - "Foreigners are now barred from buying" - Reality: non-residents remain fully entitled to buy.
• Misconception - "Property purchases now automatically grant residency" - Reality: the Golden Visa ended on 3 April 2025, so buying no longer grants residency.
• Misconception - "A 100% tax is already in force" - Reality: as of July 2026 the proposal never reached Congress and is not law.

Cost worked example - keep it simple

A clear worked example helps clients understand the difference between headlines and reality. Use the checklist and your local tax estimate to build a full cost schedule for each property. Remember the concrete Andalucia rates above when preparing these sheets.

FAQ

Q: Was a 100% tax passed for non-EU buyers?
A: No. The Prime Minister announced a proposal on 13 January 2025 mentioning "up to 100%", but as of July 2026 it is not law. The bill was never formally debated in Congress, no version has been voted on, and it was left out of the government's January 2026 housing package. In March 2026 it was widely reported as stalled for lack of parliamentary support.

Q: What taxes do non-EU buyers pay in Andalucia today?
A: Resale property carries 7% ITP. New builds carry 10% IVA plus 1.2% AJD. Notary and registry fees are roughly 1-2%. Confirm the current figure with your advisor before signing.

Q: Does buying property still give you residency in Spain?
A: No. Spain's Golden Visa ended on 3 April 2025. Buying property no longer grants residency. Non-EU visitors are subject to Schengen rules and can stay 90 days in any 180-day period.

Q: Could a 100% tax be introduced in future?
A: Any revival would require parliamentary approval and would come with an effective date. Until a law is passed and published, current tax rules continue to apply.

Q: Are non-residents still buying on the Costa del Sol?
A: Yes. Non-residents remain fully entitled to buy Spanish property, and foreign demand on the Costa del Sol stayed strong through 2025-2026.

Bottom line for buyers, owners and agents

Headlines about a proposed 100% tax created understandable alarm, but the verified facts are clear. The announcement on 13 January 2025 never became law. As of July 2026 the proposal had not been debated or voted on, was left out of the January 2026 package, and was reported as stalled in March 2026. For practical purposes in Andalucia today, non-EU buyers should plan for 7% ITP on resales or 10% IVA plus 1.2% AJD on new builds, plus roughly 1-2% in notary and registry fees. The Golden Visa ended on 3 April 2025, and buying property no longer grants residency.

If you want live market listings or accurate, notary-verified transaction data for the Costa del Sol, browse PropertyList - and agents can join the MLS to list properties and share verified data on https://propertylist.es.