Two headlines, one of them law
Spain closed its Golden Visa programme to new applicants in April 2025. That one is real. The property investment route is shut, and existing holders keep their rights.
The second headline announced a 100 percent tax on property purchases by non-EU, non-resident buyers. That one is a proposal. It was submitted to parliament in May 2025, and as of spring 2026 it had stalled without the support needed to pass. It is not law, and new build purchases were exempt even in the draft.
We have watched buyers walk away from sound Spanish purchases because a proposal was reported as if it had passed. Reading the difference between law and headline is not exciting work. It is simply what protects a decision.
What a non-EU buyer actually pays in Spain today
The real cost stack in Spain is regional, which surprises buyers used to one national rate. On a resale purchase, the transfer tax alone moves meaningfully depending on where the property sits.
- ITP transfer tax on resale property, set by region. Madrid around 6 percent, Andalusia around 7 percent, Valencia and Catalonia higher or progressive.
- On new builds, VAT at 10 percent plus stamp duty instead of ITP.
- Notary, registry and legal fees on top, commonly 2 to 3 percent all in.
- Annual non-resident income tax on the property, where non-EU owners pay 24 percent against the 19 percent rate EU nationals pay.
The 24 percent line most buyers never see coming
Spain taxes non-resident owners on their property every year, whether it is rented or not. For non-EU owners the rate is 24 percent, and unlike EU owners they generally cannot deduct expenses against rental income.
That single line changes the net yield arithmetic for a British, American or Gulf buyer compared with a French or German one, on the identical apartment.
It is not a reason to avoid Spain. It is a number that belongs in your yield calculation from the first day, not a discovery in your second tax year.
Where the residency question goes now
With the Golden Visa closed, property in Spain no longer carries a residency benefit. Non-EU buyers planning real time in Spain now look at the non lucrative visa or the digital nomad visa, each with its own income tests and presence rules.
The property purchase and the right to live in the country are separate applications with separate criteria. Anyone bundling them into one promise is selling the 2023 rulebook.
The question that decides a Spanish purchase
Spain remains one of the most liquid, most visited property markets in Europe. The fundamentals did not change in 2025. The paperwork around foreign buyers did.
The question worth asking is not whether Spain is still open to non-EU buyers. It is open. The question is whether your specific purchase still works once the regional transfer tax, the 24 percent annual line and your realistic occupancy are counted.
That is a numbers question, and it has a written answer. We prepare it before our clients commit to anything. Independent advice. Clear numbers. No pressure to buy.
Sources
- Del Canto Chambers, the end of Spain’s Golden Visa, April 2025 closure.
- Zagdim Overseas and Expat Lawyer Spain, status of the proposed 100 percent non-EU buyer tax, submitted May 2025, stalled as of spring 2026, new builds exempt in the draft.
- Taxes for Expats and Co-Ownership Property, 2026 guides to ITP rates by region, new build VAT, and the 24 percent IRNR rate for non-EU owners.
See the true cost, not just the headline price
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