Editorial transparency and use of artificial intelligence
This article forms part of the CostaLuz Lawyers blog and is published for general informational and educational purposes only. It was prepared with the assistance of artificial intelligence tools and, before publication, was substantively reviewed and editorially approved by Maria de Castro, a Spanish-qualified lawyer registered with the Cádiz Bar Association under number 2745, founder of CostaLuz Lawyers and the person responsible for the editorial review of the published content.
This article does not constitute legal, tax, immigration, employment, estate-planning or investment advice and does not replace an individual assessment and the professional work of the appropriate CostaLuz Lawyers specialist. No action or omission should be based solely on this information.
Spain’s real-estate market has been on an upward trajectory for the past two years. With 698,381 homes changing hands in 2024—a 12.1% increase over 2023, and slightly above 2022’s figures—foreign demand remains a key driver, accounting for nearly 20% of all transactions. Yet in June 2025, Prime Minister Pedro Sánchez announced a headline-grabbing measure: double the Transfer Tax (Impuesto de Transmisiones Patrimoniales, ITP) on residential purchases by non-EU, non-resident buyers, potentially lifting their rate from the standard 10% up to 20%.
Spain’s Proposed Tax on Non-Resident Foreign Buyers
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This article by David Marrero, published today on Idealista, provides us with these figures.
- Scope: Only non-EU nationals without Spanish tax residency.
- Impact: Approximately 2.7% of all 2024 home sales would see their ITP rate doubled.
- Objective: Discourage speculative purchases and free up more housing stock for locals.
However, around 90% of foreign purchasers in 2024 were either EU citizens (51.9%) or non-EU residents already living in Spain (58.1% of total foreign buyers) — so the real effect on market liquidity and government coffers would be minimal.
Our Take: This Hike Won’t Survive a New Government
Any tax with such a narrow base and more political than practical purpose is vulnerable:
- Low revenue potential: With only 2.7% of sales affected, projected additional ITP income is marginal.
- EU legal frameworks: Restricting non-resident EU buyers risks infringement procedures at the European Court of Justice.
- Regional backlash: Coastal provinces that rely on international investment (Andalucía, Comunidad Valenciana, Islas Baleares) will lobby heavily against it.
As Spain gears up for its next general election, a shift toward either centrist or right-leaning leadership will likely see this measure repealed or significantly watered down in favor of comprehensive housing policies—such as incentivizing new-build supply, rent subsidies, or streamlined planning permissions.
Off-Plan (VAT) Sales Remain Unaffected
A crucial distinction: off-plan purchases (new construction bought directly from developers) pay VAT (IVA)—10% on second homes—not ITP. This means:
- Developers & buyers of off-plan homes see no change in transactional costs.
- Resale market bears the brunt: only secondary-market deals by non-resident, non-EU buyers get hit with the doubled rate.
For investors eyeing new developments—whether a beachfront apartment in Málaga or a countryside villa in Mallorca—cost assumptions remain unchanged, making off-plan properties an even more attractive segment.
Turn Your Purchase into a Resident Sale with an NLV Visa
Non-EU buyers can easily sidestep the proposed hike by securing residency in Spain. As Spanish residents, they:
- Pay the standard ITP rate (between 6% and 10%, depending on region) instead of the doubled rate.
- Obtain residency rights for one year (renewable)
- Access local services seamlessly—bank accounts, mortgages, utilities, and public healthcare coverage.
How CostaLuz Lawyers Can Help: Integrated Sale + Visa Packages
At CostaLuz Lawyers, we’ve perfected a “Sale + Visa” service to guide you from your first enquiry to handing over the keys:
- NIE and NLV processing: end-to-end management of your visa, from financial proofs to consular liaison.
- Property sourcing & negotiation: access our curated portfolio of off-plan and resale listings, with expert price benchmarking.
- Legal diligence & tax planning: thorough title searches, ITP optimization, and pre-contract advice.
- Closing & follow-up: contract drafting, notarization, registration, plus ongoing support for visa renewals and tax filings.
Whether you’re targeting a turnkey apartment in Barcelona’s Eixample or a rustic finca in Andalusia, our dual-service ensures you not only secure the most favorable tax treatment but also gain the peace of mind that comes from Spanish residency rights.
Contact us for a comprehensive consultation—visas, property purchase, taxes, lifestyle—and we’ll be delighted to provide you with personalized information.
Aviso legal: Esta informacion se proporciona unicamente a titulo orientativo y no constituye asesoramiento fiscal o legal personalizado. Cada caso debe evaluarse de forma individual segun las circunstancias especificas del cliente. Es imprescindible consultar a un especialista cualificado antes de tomar cualquier decision.
Legal Notice: The content on this page is provided for general informational and educational purposes only. It does not constitute legal advice and should not be relied upon as such. No action should be taken based solely on this content without first seeking independent professional legal counsel. Each case requires individual assessment based on its specific circumstances. CostaLuz Lawyers accepts no liability for actions taken or not taken based on this content.
Questions about Spanish tax?
We plan and file your Spanish taxes so you never overpay or miss a deadline. Bilingual help across southern Spain since 2006.
Related guide: how to claim an off-plan bank guarantee in Spain.
Reviewed by María Luisa de Castro, CEO at CostaLuz Lawyers — Updated 2026
This is general information, not definitive legal advice — every case requires individual analysis.