Spain 100% Tax – May 2025 Update

Spain has formally introduced a controversial new housing bill that includes a potential tax targeting non-resident non-EU property buyers. While some media refer to it as a “100% tax,” the actual rate remains unclear. The bill needs parliamentary approval, which is uncertain, and may conflict with EU laws. If passed, it could be enacted as early as June 2025. For now, it’s wise to monitor developments but hold off on assumptions until details are finalised.

This is the name of the tax: Impuesto Complementario Estatal sobre la Transmisión de Bienes Inmuebles a no Residentes en la Unión Europea

This is the actual bill:  Spain 100% tax bill may 2025

This is the video of the announcement by the housing minister Isabel Rodríguez

Key Updates:

• Form of the Tax: It will be a special central government tax, not a regional one, therefore bypassing Spain’s autonomous regions (many governed by the opposition People’s Party), which typically control transfer taxes.

• Unclear Specifics: While often referred to as a “100% tax,” the actual rate or structure hasn’t been published in the proposal available so far. Even legal professionals are cautious about interpreting the press summaries too literally.

• Parliamentary Approval Still Needed: The bill requires passage by Parliament, which is uncertain due to the Socialist Party’s lack of a clear majority. Some analysts believe its chances are slim.

• Legal Concerns: Multiple press reports and legal experts have raised red flags about its potential conflict with EU laws regarding the free movement of capital. If enacted, it may face legal challenges domestically and from the EU.

• Timing: According to Idealista, the Minister of Housing stated that the government aims to push the proposal forward “at the first opportunity”, which could be in the first half of June 2025.

• Expert View: Lawyer Peter Franke (Franke & de la Fuente) advises caution:

  “It is essential to avoid oversimplification or premature conclusions. The first step is to see whether the bill will be successfully voted through.”

Agent Reactions:

• Hayley Bromley, Managing Director at Bromley Estates Marbella: “Spain thrives on tourism & foreign investment! I have to assume this would not be passed by parliament, it would be devastating to the Spanish economy. It maybe solve one problem but start a much bigger issue. There are other measures that have already been taken, that will correct the curve of affordable housing.”

• Carlos Pedrosa Brías, CEO at Filipinas Real Estate: “As realtors we should be heard… I don’t think anyone in this industry agrees with these measures. Definitely a very poor sign from the government regarding investors and investments; definitely an act purely to preserve the false existence of this government…”

This is an evolving story. Stay tuned for updates.