Spain has long been a top destination for foreign property buyers, offering a strong real estate market, a high quality of life, and attractive residency options. However, recent political discussions—particularly President Pedro Sánchez’s comments about a potential 100% tax for Non-European and British buyers—have led to confusion among investors. Discover what taxes and visas options foreigners have to buy property and live in Spain in 2025.
Recent comments by Spain´s President Sanchez have created speculation and fear of high property taxes for foreigners buying property in Spain. However, the President´s comments were misunderstood and are far from becoming law—Spain´s property taxes remain the same in the foreseeable future, and various residency options are available despite the ending of the Golden Visa this April.
With the Golden Visa program set to end on 3 April and Spain´s President Pedro Sanchez´s comments on 13 January about the possibility of increasing property taxes for foreigners, there is some confusion about the possibility of buying property in Spain. This blog outlines the situation and the status of internationals interested in purchasing property in Spain in 2025.
Yes, foreigners, including non-European internationals, have many routes to buy property in Spain. The growing popularity of this charming sunny country, especially in southern parts such as Marbella and Costa del Sol, means that investing in property continues to be a good option for internationals searching for a second home in a beautiful and culturally inspired location, either as a primary residence, holiday home or rental investment. Despite recent discussions and upcoming visa changes, the tax rates of internationals buying property in Spain are not due to change in the coming months.
In January 2025, Spanish President Pedro Sánchez commented that non-European buyers could face ¨100% property tax¨. While what the President meant was that he was considering the option of non-European buyers paying double the regular property tax, the comment was interpreted to mean that they might have to pay 100% of the property price, effectively doubling the cost of buying property for non-Europeans including UK citizens – understandably causing concern among potential investors from Britain and other parts of the world.
However, the reality is quite different:
Even if a new tax were introduced, it would only apply to new purchases—not to existing property owners or people finalising a property purchase before any future tax changes come into force.
Since many political groups have already opposed the idea, and given that Sánchez’s government does not hold an absolute majority, the likelihood of such a tax being implemented in its extreme form is low.
There is no immediate impact on foreign property buyers in Spain, and the Spanish property market remains a fully accessible and attractive market for international investors.
At this stage, it is unlikely that a 100% tax on British buyers will become law. Here’s why:
Even if tax changes are introduced in the future, they would likely be less extreme than the current headlines suggest and only apply to new purchases made after the law comes into effect.
For those considering buying property in Spain, this serves as a reminder that acting sooner may be beneficial before any potential tax changes occur.
Although the taxes and fees you must pay when purchasing a property in Spain vary depending on the property and region, in general, total costs and fees sum up to around 10-12% of the purchase price – as a guide. This is true for all property purchases in Spain, irrespective of whether you are buying with a mortgage (hipoteca). If you purchase with a mortgage, you would need to front an additional 20-30% of the purchase price as a deposit and bank fees – depending on particular bank conditions, noting that most banks charge a fee of around 1% of the mortgage value. You can read more detail in our Marbella property buyers guide.
While Spain remains open to foreign buyers, it is vital to understand the standard property taxes that apply when purchasing and owning real estate.
• Resale properties: There is a transfer tax (ITP) of 6% to 10%, depending on the region. This is 7% when purchasing a property in Andalucía.
• New-build properties: 10% VAT (IVA) + 1.5% Stamp Duty (AJD) in most of Spain.
Notary fees when completing the purchase can vary between 0.1% and 2% of the purchase price, plus another 400-700 euros to the land registry after the sale. Legal costs are usually around 1%, but note that these costs are all included in the 10-12% guide for the total cost of purchasing a property in Spain mentioned above.
• Non-Resident Income Tax (IRNR) (if not renting out): A small tax based on the property’s cadastral value.
• If renting out the property: EU/EEA citizens pay a 19% tax on rental income, while non-EU citizens (including Brits and Americans) pay a 24% tax on rental income.
• Local Property Tax (IBI): an annual tax of 0.4% to 1.1% of the rateable value of the property, depending on location.
• Capital Gains Tax (Plusvalia): 19% to 26% when selling a property, depending on the region and the citizenship of the non-resident. Non-European residents usually pay 24%, while European and EEA residents pay 19%.
• Inheritance Tax: Varies by region, with some areas offering reductions for direct family members.
These are standard real estate taxes—no extra taxes specifically targeting any particular buyers.
To buy a property in Spain, foriegners must have a NIE (número de idenitificacíon del extranjero) and a Spanish bank account. The NIE must be obtained in Spain, can take time, and must be issued prior to signing the deed or finalising the purchase, so potential buyers are advised to start organising the process with their lawyers as early as possible. By law, all property owners who are not residents in Spain must also appoint a tax representative.
Yes, European residents from within the Schengen area, including France, Germany and Italy, can live and work in Spain without any problem. They just need to apply for residency to obtain their ´green card´ or ´NIE´ residency rules.
No. For foriegners buying property in Spain, the issue is not whether they can buy property, rather how much time they can spend in Spain as non-residents – so the real question is what visas they are entitled to apply for.
Non-Europeans need to apply for relevant visas to visit and reside in Spain.
Once the Spanish Golden Visa ends on 3 April 2025, non-EU buyers must consider alternative residency options. You can see a full list of Spanish Visas here: it is always wise to consult the Spanish embassy in your country or your lawyer for assistance. Once you have lived in Spain legally for five years, you can apply for Long-Term Residence Visa.
These visas allow non-EU nationals to live and work in Spain under various conditions. The Employee Visa – is for those with a formal employment contract with a Spanish company, the Self-Employment Visa – For freelancers or individuals starting their own business in Spain and the Telework Visa or Digital Nomad Visa – is for remote workers employed by foreign companies who want to reside in Spain while working online.
Other work-related visas include the Highly Qualified Worker Visa, for professionals in specialised fields with high-demand skills; Intra-Company Transfer Visa, for employees transferred to a Spanish branch of their employer; Artist/Staff/Reporter Visa, for professionals in cultural, artistic, or media-related fields; and Working Holiday Visa, available for young people from certain countries, allowing limited work during an extended stay.
These visas are for those planning to reside in Spain without engaging in professional work. They include the Non-Lucrative Residence Visa, sometimes known as the Retirement Visa, which is suitable for retirees and individuals with sufficient passive income or savings without the need to work, and the EU Long-Term Residence Recovery Visa, which is for individuals who previously held EU long-term residency status and wish to recover it.
For non-Europeans planning to invest, start a business, or engage in entrepreneurial activity in Spain there is the Entreprenuer visa and The Golden Visa (also known as Investor Visa) until 3 April 2025.
For non-EU citizens pursuing academic, research, or training opportunities, the options include the Study Visa—for students enrolled in recognised educational programs; the Auxiliar de Conversación Visa—for language assistants working in Spanish schools; the Researcher Visa—for individuals conducting scientific or academic research; and the Internship Visa—for students or graduates completing internships in Spain.
These visas are intended for reunification of family members of residents or EU citizens legally residing in Spain including spouses, children, and dependent relatives.
Despite the political discussions about taxation and the ending of the Golden Visa, Spain remains an excellent location for foreign property investment, namely:
While the 100% tax proposal has made headlines, it is not yet a law, and foreign buyers are still welcome in Spain.
Spain remains a stable and attractive destination for property buyers worldwide, with a full range of visa and residency options available for expats—whether for investment, lifestyle, or retirement.
For those considering buying property in Marbella area, now is the time to move forward and secure a strong investment in a desirable market.
Melinda Rendina Content Writer & Marketing Creator
Melinda is an experienced writer specialising in real estate, urban planning, lifestyle, architecture and design. A seasoned Marbella resident, she holds an Undergraduate Degree in Social Science with Honours in Politics, and a Masters degree in Urban Planning.
Combined with her background working in local and national government, marketing, and Marbella real estate, her diverse experience empowers her to offer relevant and unique insights into Marbella life and the local property market.
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