If you’re a non-EU citizen thinking about buying a home in Spain, you’ve probably heard the buzz: “Spain is doubling the tax on foreign buyers!” And yeah, that’s sort of true. But only partially, and it's not law yet. Here's what’s really going on, and how it compares to other countries like the U.S., Canada, and France.
The Big News: A 100% Extra Tax (Maybe)
In May 2025, the Spanish government proposed a “complementary real estate transfer tax”, basically a surcharge that would double the normal transfer tax (ITP) for non-EU and non-EEA buyers purchasing second-hand homes in Spain.
- Current ITP: Around 6–10%, depending on the region.
- Proposed Extra Tax: Another 100% of that amount. So, your effective tax could jump from ~10% to nearly 20%.
But here’s the catch:
🛑 It’s not law yet. It’s still a draft. It has to go through Parliament, the Senate, and probably the courts.
Who Would It Affect?
This tax would only hit:
- Non-EU/EEA citizens
- Buying resale (not new-build) homes
- Who aren’t legal residents of Spain
So if you’re from the U.S., Canada, or UK (post-Brexit), and you’re buying a second-hand flat in Barcelona, you’d be targeted, unless you already have Spanish residency.
Meanwhile, EU and EEA citizens? Totally exempt.
Why It’s Being Called Discriminatory
A lot of legal experts and international tax advisors are warning that this policy could be illegal under EU law.
Why? Because it unfairly penalizes people based on their nationality or residency. The European Court of Justice has already struck down similar discriminatory rules in the past, including inheritance tax and capital gains tax that treated non-residents differently.
In short: Spain’s proposal could be challenged and overturned.
How Does This Compare to Other Countries?
Let’s zoom out. Is Spain the only country doing this kind of thing? Not really, but it's certainly one of the boldest.
🇺🇸 USA
- No federal tax penalties for foreign buyers.
- Some states (like Florida or Texas) have restrictions, mostly around Chinese buyers or land near military zones, but residential property is mostly fair game.
🇨🇦 Canada
- Canada actually banned foreign buyers in 2023–2025.
- And in provinces like British Columbia or Ontario, foreign buyers pay a whopping 20% extra tax on top of normal purchase costs.
So yeah — Canada might be even tougher than Spain in some areas.
🇳🇿 New Zealand
- They’ve banned foreign property buyers altogether (unless you’re Aussie or Singaporean).
- This law has been in place since 2018 to keep housing affordable.
🇫🇷 France, 🇩🇪 Germany, 🇵🇹 Portugal
- No extra taxes.
- No bans.
- Foreigners are treated the same as locals when buying real estate.
- Residency and tax status only affect what happens after the purchase (like income or inheritance tax), not the purchase itself.
Why Is Spain Doing This?
The official reason is to help solve Spain’s housing crisis, especially in tourist-heavy areas like Barcelona, Palma, and Málaga. Locals are getting priced out, and there's political pressure to “take back” housing from foreign investors and speculators.
But critics say this is more symbolic than practical, and could backfire by:
- Deterring investment
- Reducing construction and renovation
- Triggering legal battles with the EU
What You Can Do
If you're non-EU and planning to buy property in Spain:
- ✅ Consider getting residency before you buy (e.g., via Golden Visa, Digital Nomad Visa, or Non-Lucrative Visa).
- ✅ Buy a new-build property (this tax only applies to second-hand homes).
- ✅ Talk to a real estate lawyer to stay ahead of legal changes.
Final Thoughts
Spain isn’t the first country to get strict with foreign buyers, and it won’t be the last. But this 100% tax hike feels pretty extreme, and it hasn’t even passed yet. If you’re worried, keep an eye on Parliament this summer and fall. Until the law is finalized, there’s still time, and possibly legal grounds, to stop it.