A new bill has been proposed in parliament in Spain that could mean that all people from outside the EU will need to pay a 100% tax on properties.

By Emily Wright, World News Reporter

10:13, Tue, Jun 3, 2025 | UPDATED: 10:15, Tue, Jun 3, 2025

Idyllic Costa Brava seaside town in Girona Province, Catalonia

A new Spanish bill could mean Brits will need to pay 100% tax on properties. (Image: Getty)

Brits planning on buying a home in Spain could be forced to pay the same amount in taxes as the house costs them if a new bill succeeds in its parliament. The Spanish Socialist Party (PSOE) has proposed a new bill that requires all people from outside the European Union to pay a 100% tax if they buy a property.

The socialists have made this proposal to facilitate access to rental homes for Spaniards amid the nationwide housing shortage. The new regulation aims to create a new complementary tax to the Property Transfer Tax that only affects citizens residing outside the EU. The proposal could mean that a Brit wanting to buy a house valued at €500,000 (£422,300) could be forced to fork out €1 million (£844,600), including tax.

Spanish Parliament

The PSOE's bill has been described as 'madness' by critics. (Image: Getty)

This proposal has been met with significant backlash, with the president of the Spanish Registry of Economists and Tax Advisors (REAF), Augustin Fernandez, calling it "madness".

"The consideration of whether or not this tax is legal will end up being resolved by the courts," he said.

The bill would also "penalise" investment by non-EU foreigners, he added.

The PSOE's initiative may be symbolic because non-EU property buyers only make up about 3% of the share. Additionally, their price is already the highest per square metre under the current scheme.

A protester holds a set of keys to his home during a protest...

In April, Spaniards took to the streets across 40 cities to demand a solution to the housing crisis. (Image: Getty)

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Spain has been cracking down on non-EU citizens over the past few months. On April 3, it scrapped its popular Golden Visa Programme, which offered residency to Brits who invested a large amount of money in Spain.

Spain is currently grappling with a severe housing crisis, with skyrocketing rents and limited affordable housing options. This crisis is being fueled by several factors, including increased tourism and the proliferation of short-term holiday rentals that bring in more money for landlords than traditional tenants. A lack of new construction, particularly in urban areas, due to increased costs and labour shortages, has also meant that Spain has failed to keep up with rising demand.

In April, Spaniards took to the streets across 40 cities to demand a solution to the crisis. United under the slogan "Let's end the housing business," demonstrations took place in nearly all of Spain's major provincial capitals and cities, including Madrid, Barcelona, Valencia, the Balearics, and the Canary Islands.