Spain has proposed a significant increase in property taxes for non-EU buyers, potentially doubling the existing property transfer tax (ITP) or VAT plus stamp duty (AJD). This proposal, announced by Prime Minister Sánchez to address housing affordability, aims to discourage speculative buying by non-EU residents.
Currently, Spanish property transfer tax for resale properties ranges from 6% to 10%, while new builds incur 10% VAT plus 0.5% to 1.5% stamp duty, varying by region. The proposed change would effectively double these rates for non-EU purchasers.
Key Implications for Investors:
Not yet law: The proposal requires parliamentary approval.
Reduced attractiveness: Higher taxes could deter non-EU investment in Spanish property.
Economic impact: A decline in foreign buying could negatively affect local economies.
Residency by Investment: Increased costs may impact the viability of property-based residency routes. The abolition of the Golden Visa in April 2025 further complicates this.
Regional differences: The application of the tax hike across Spain’s autonomous communities is unclear.
Strategic Implications for Global Mobility:
This potential tax change necessitates a reassessment of investment strategies for non-EU clients interested in Spain. Exploring alternative European options or different asset classes may become more pertinent.
In conclusion, Spain’s proposed property tax increase for non-EU buyers, while not yet enacted, could significantly alter the landscape of international property investment and residency options in the country. Careful monitoring of legislative developments is crucial for investors and global mobility specialists.