The 100% Tax on Foreign Buyers in Spain: What’s True in 2026
The 100% tax on non-EU buyers is still just a proposal, not a law. We explain what the bill says, why it's been stuck in Congress for over a year, and what taxes foreign buyers in Mallorca actually pay today.
In January 2025, the Spanish government announced a measure that made headlines across Europe: a 100% tax on the value of homes bought by non-resident, non-EU foreigners.
A year and a half later, it’s still the question we get asked most by international buyers looking at Mallorca: is this measure still on the table? Does it affect me if I’m a foreign buyer today? The short answer is no, not yet — and in this article we go through why in detail.
In short: as things stand, the 100% tax is a bill the government registered with Congress in May 2025 and which, more than a year later, hasn’t been debated even once in parliament. It isn’t law, it doesn’t apply, and there’s no set date for it to come into force. In the meantime, foreign buyers in Mallorca keep paying the same taxes as always: ITP, VAT on new builds, AJD, and IRNR obligations if they don’t reside in Spain.
What the 100% tax actually proposed
On 13 January 2025, President Pedro Sánchez presented a package of twelve measures to tackle Spain’s housing access crisis. One of them was a new state tax, designed to levy up to 100% of a home’s value when the purchase was made by a non-resident citizen from a country outside the European Union, without tax reciprocity with their home country.
According to the government itself, the idea was to discourage buying property as a pure investment asset by buyers who aren’t going to live in Spain, in a context of strong pressure on the housing market in major cities and tourist areas.
The draft was formalised as a bill and registered with the Congress of Deputies on 22 May 2025. Since then, the text has followed the same path as many other legislative initiatives this term: waiting its turn.
| Date | Milestone |
|---|---|
| 13 January 2025 | Pedro Sánchez announces the twelve-measure housing package, including the 100% tax |
| 22 May 2025 | The draft is registered as a bill in Congress |
| January 2026 | New government housing reform package; the 100% tax is left out |
| As of today | Still not debated or voted on in Congress |
Where things stand today
More than a year after it was registered, the 100% tax bill hasn’t been debated in Congress even once: no reading, no committee stage, no plenary debate.
When the government presented its housing reform package in January 2026, the measure was left out of the announced priorities, which focused on rental incentives and other tools. It’s a fairly clear sign that even within the government itself, this particular proposal has lost weight compared to other lines of action.
The underlying reason is arithmetic: the government rules as a minority and needs support from several groups to pass any new tax measure, which is especially hard on tax matters. Junts, a key parliamentary partner on other votes, has opposed this measure, considering it ineffective at solving the underlying housing access problem.
Meanwhile, other parties to the left of the PSOE consider it insufficient and are calling directly for purchase restrictions, not just a deterrent tax. With that map of support, the bill simply doesn’t have the votes it needs to move forward right now.
Why, even if passed, it raises serious legal doubts
Beyond the parliamentary deadlock, several legal and tax experts have pointed out that the measure, as originally proposed, could clash with EU law and with the Spanish Constitution itself. A levy that treats buyers so unequally based on nationality or country of residence can conflict with the principles of free movement of capital that govern the EU’s economic relations with third countries, and with the principle of equality and non-discrimination.
This doesn’t mean the measure is unfeasible by definition, but it does explain why any version that’s eventually processed will likely be quite different — and more nuanced — than the original January 2025 announcement.
What foreign buyers in Mallorca actually pay today
While the 100% tax remains stuck, the real taxation that applies to any foreign buyer — whether from the EU or not — is what’s been in force for years and is worth knowing well before signing:
- The ITP (Property Transfer Tax) on resale homes, with a progressive scale in the Balearic Islands that can reach 13% in the highest brackets. We explain it in detail in our guide to ITP in the Balearic Islands.
- VAT plus AJD (Stamp Duty) on new-build homes, instead of ITP.
- The IRNR (Non-Resident Income Tax), with the obligation to declare deemed income every year even if the property is empty, and the 3% withholding that applies when the non-resident owner sells. You can see the details in our article on IRNR and the Modelo 210.
None of these taxes currently distinguishes between EU and non-EU buyers in any essential way: the buyer’s nationality doesn’t change the ITP rate or the purchase process, although it does affect aspects like tax residency for IRNR purposes.
Who it would affect if it were ever passed
According to the original text, the measure specifically targeted non-resident buyers from countries outside the European Union and the European Economic Area, without tax reciprocity agreements with Spain. In other words, in its initial form it wouldn’t affect buyers from countries like Germany, France, Sweden, or any other EU member state, which make up the vast majority of foreign demand in Mallorca.
It could affect, if passed as originally proposed, buyers from countries like the United Kingdom, the United States, the United Arab Emirates, or Switzerland, among others — although any final version of the text could introduce exceptions or different thresholds from the original announcement.
What to do in the meantime if you’re considering buying
The practical recommendation for any foreign buyer, whether from the EU or not, is the same as it was before January 2025: go ahead with the purchase process as normal, rely on a lawyer or administrative agent experienced with international buyers, and budget for the real taxation in force today, not a hypothetical scenario that’s been stuck in Congress for more than a year.
That said, since this is an ongoing legislative process, it makes sense to ask your advisor to confirm the bill’s status right before signing the reservation contract, especially if your transaction stretches over several months.
Frequently asked questions
Is the 100% tax in force today?
No. It’s a bill registered with Congress in May 2025 that hasn’t yet been debated or voted on.
Does it affect buyers from the European Union?
No, according to the original text the measure targets exclusively non-resident buyers from outside the European Union and the European Economic Area.
Could it be applied retroactively to purchases already made?
That’s not how the Spanish tax system usually works: any new tax would, in principle, apply to transactions after it comes into force, never to sales already completed by deed.
What taxes do I pay today as a non-EU buyer?
The same as any other buyer: ITP or VAT+AJD depending on whether it’s a resale or new-build home, plus IRNR obligations if you don’t reside for tax purposes in Spain.
This article is updated as the parliamentary process moves forward — or doesn’t. If you’re considering buying in Mallorca as a foreign buyer, we also recommend reading our guide to the NIE and our analysis of the Mallorca property market in 2026.