Spain's 100% tax on foreign home buyers: what actually happened
No, Spain is not charging a 100% tax on foreign home buyers. Pedro Sánchez's proposal stalled in Congress and never became law. Here's what's really going on.
No, Spain is not charging a 100% tax on people buying a home from abroad. The idea made headlines everywhere, but the truth in 2026 is far simpler: the proposal stalled and never became law.
Will Spain charge foreigners a 100% tax?
Right now, no. In January 2025, Prime Minister Pedro Sánchez announced plans for a tax of “up to 100%” on property purchases by non-resident buyers from outside the European Union — people from countries such as the UK, the US or Canada. In practice, it would double the cost of the deal. But as of April 2026 no bill had been adopted, the measure was never even debated in Congress, and the government’s own January 2026 housing package quietly dropped it.
Why did Spain’s 100% tax proposal stall?
For two reasons. The first is political: the Spanish government could not gather enough parliamentary support to bring it to a vote. The second is legal: there are serious doubts that such a tax is compatible with EU law, especially the free movement of capital, and the EU Court of Justice has previously ruled against Spain over discriminatory tax measures. It is worth stressing that the proposal only targeted non-resident, non-EU buyers — residents of any nationality would be exempt.
What changes for anyone buying a home in Spain (or Portugal)?
For now, nothing new in Spain: the usual rules and taxes apply. But the episode reflects a trend running across southern Europe — political pressure to curb speculative buying by non-residents at a time when prices are squeezing locals. It is the same conversation you hear on this side of the border.
See also: the real cost of buying a home in Portugal as a foreigner. Official source at the Spanish government portal.
Image: Kiban / Wikimedia Commons (CC BY-SA 3.0)
