If you're an American thinking about buying on the Costa Brava, you've probably seen the headlines: some figures in Spain want to put a 100% tax on foreign buyers, doubling the price of a home. But is this change likely to happen? What is the status of this proposal at this point?
The short answer: as of October 2026, the tax has not been passed, it isn't in force, and it looks unlikely to happen. The proposal was never debated in Parliament, it isn't part of the government's latest housing measures, and with Spain heading to an early election on 29 November, the bill it sat in has lapsed. Here's what was actually proposed, where things stand, and what it means if you're planning to buy.
What was actually proposed
Prime Minister Pedro Sánchez first announced the idea in January 2025, and his Socialist party (PSOE) submitted it to Parliament in May 2025 as part of a broader housing bill. The official name was the "Complementary State Tax on the Transfer of Real Estate to Non-EU Residents".
It was narrower than the headlines suggested. The tax would only have applied if all of these were true:
You're not an EU citizen. Americans, Brits and Canadians would count; Germans or Dutch buyers would not.
You're not a resident in Spain. The government defined this as living in Spain fewer than 183 days a year.
You're buying a resale home. It was designed for purchases not subject to VAT, which in practice means existing homes rather than new builds bought from a developer.
Where it did apply, it would have been charged on top of the normal purchase tax, at 100% of the property's value. On a €1,000,000 home, that's roughly another €1,000,000. The government's argument was that non-EU buyers were buying to invest rather than to live. Critics pointed out that non-EU residents bought about 27,000 homes in 2023, fewer than 5% of all sales in Spain.
Where it stands now
Despite the international headlines, the tax went nowhere. According to The Local Spain, by the end of March 2026 the bill had not been formally debated in Parliament even once: no readings, no committee stage, no vote.
The government's later housing measures moved in a different direction. A new package in January 2026 focused on rental incentives and holiday-let restrictions. Then, after Congress rejected two housing decrees in early October, the government approved two new decrees on 6 October and called an early general election. Neither the January package nor the October decrees include the 100% tax; they target large landlords and investment funds instead.
The election also matters for a technical reason: when Spain's Parliament is dissolved, pending bills lapse. The housing bill that contained the tax is no longer moving. The Local's own verdict is that, as things stand, the proposal is "dead in the water."
Could the 29 November election change things?
In theory, yes. In practice, any version of the tax would have to start again from scratch. Here's how it could play out:
If the centre-right Partido Popular (PP) forms the next government, possibly with Vox, the tax is very likely to be dropped. The Local reports that polls currently point this way, and that the right's plans lean towards cutting property taxes rather than raising them.
If the Socialists (PSOE) stay in power, they could bring the idea back. But it would need a new bill, a majority in Parliament (the last housing decrees were voted down), and it would likely face a legal challenge. Several lawyers argue it breaks EU rules on the free movement of capital and discriminates by nationality.
Either way, nothing changes overnight: a new tax would take many months to pass, and you'd hear about it well before it applied.
What this means if you're buying on the Costa Brava
Don't let the headlines stop your search. Right now, Americans buy on exactly the same tax terms as before the proposal. The normal purchase costs still apply, but there's no extra 100%.
Don't rush either. Some sellers and agents use "buy before the tax hits" as a pressure tactic. There's no deadline to beat, so take the time to find the right home.
Get proper advice before you sign. A good independent lawyer will confirm the tax rules that apply on the day you buy. That's standard practice for any purchase in Spain anyway.
This article is general information, not legal or tax advice. Rules can change, so always check your own situation with a qualified lawyer or tax adviser.
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