The "100% tax" on foreign buyers: what was proposed and what is actually in force

By Ignacio Capote Cánovas - Octubre 2026

Few headlines have frightened the foreign buyer as much as the "100% tax". If you've read that Spain is about to charge double the price in tax to anyone buying from abroad, breathe: the 2026 reality is far less dramatic. Let's separate the noise from the law.

What was announced. In 2025 the Government publicly floated a surcharge of up to 100% on the purchase tax for buyers from outside the European Union who, in addition, do not reside in Spain. It was presented as a deterrent, to cool foreign demand in high-pressure areas, not as a revenue measure.

What is in force. As of today, nothing. The announcement has not become law: it has not been voted on, it is not in the Official Gazette, and the January 2026 housing package itself left it out. Until that changes, it does not apply. And, if approved as announced, it would affect only non-EU non-residents and, apparently, the resale market, not residents or EU citizens.

What you actually pay today. Resale homes in Andalusia are taxed with ITP at 7%. New builds, VAT at 10% plus Stamp Duty (AJD) at 1.2%. That's the reality, and it's what we use to work out your transaction, not the headline.

Legal analysis. Three keys. First, in tax law, with no published rule there is no tax; a political announcement binds no one. Second, its very nature, a "deterrent" rather than a revenue measure, makes it legally delicate. Third, and most interesting: the free movement of capital under article 63 of the Treaty on the Functioning of the EU applies also towards third countries, not only between Member States; a surcharge designed specifically against the non-EU buyer could face serious questions of compatibility with Union law. In other words: even if it were ever processed, it would not be an easy or immediate path. Our advice is the usual one: don't decide on headlines; we'll work out your real taxes and warn you the day anything actually changes.