Can Non-EU Citizens Buy Property in Spain? Understanding the “100% Tax” Myth

If you’re a non-EU citizen—such as a British, American, Canadian, or other international buyer—looking to purchase property in Spain, you may have come across recent headlines about a supposed “100% tax” on non-EU property purchases. Here's what you need to know:

The 100% Property Tax Does Not Exist

In January 2025, Spain’s president made headlines by proposing a 100% tax on property purchases by non-EU nationals. However, this proposal is widely seen as political posturing ahead of elections, and experts agree it is not legally viable.

Under European Union law, Spain is bound by the free movement of capital, meaning it cannot impose discriminatory taxes or restrictions on foreign investors, including non-EU citizens. The European Court of Justicewould almost certainly strike down any such law.

Can Non-EU Citizens Still Buy Property in Spain?

Yes, absolutely. Spain welcomes international investment and continues to be one of the most attractive real estate markets in Europe for both EU and non-EU buyers. Whether you’re looking for a holiday home on the Costa Blanca, a rental investment, or a permanent move, Spain’s legal framework protects your rights.

What Taxes and Costs Do Apply to All Buyers?

Whether you’re from the EU or outside of it, buyers in Spain typically pay the following standard fees:

• Property Transfer Tax (ITP) or VAT (IVA) (depending on whether the property is new or resale)
• Notary and land registry fees
• Legal fees and agency commission

These costs are standard and apply equally to all buyers, regardless of nationality.

The Facts Behind the Headlines

Let’s break down the situation:

• There is no 100% tax on non-EU property buyers
• The proposed policy would face legal challenges under EU law
• Only 3% of property sales in Spain in 2023 involved non-EU buyers—this group has minimal market impact
• Spain’s coastal economy heavily depends on international buyers
• Spain remains open and welcoming to non-EU real estate investors

 Invest with Confidence at Sunlife Villas

At Sunlife Villas, we guide both EU and non-EU buyers through every step of the purchase process. We work closely with trusted legal professionals to ensure full transparency, peace of mind, and compliance with all legal requirements.

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Explore our carefully selected properties and start your journey toward owning a home in Spain with complete confidence. Whether you're buying from the UK, the U.S., or elsewhere, we're here to help you navigate the market safely and successfully.