Spain proposes new housing tax

Photo: Idealista

Alberto Ibanez, a deputy from the Compromis bloc within the Sumar party, has proposed introducing a 25% tax on housing resales if less than two years have passed since the purchase. He believes that this measure would help curb speculative “flipping” and slow down price growth, reports Europa Press.

The initiative has been submitted to the Parliamentary Committee on Housing and Urban Agenda. The explanatory note emphasizes that speculators’ actions often amount to cosmetic changes—painting or minor energy-efficiency upgrades—after which they resell the property at a higher price. “This practice not only strips housing of its social function but also makes a basic necessity inaccessible for the majority of citizens,” Ibanez said.

He referred to Canada’s experience, where the province of British Columbia has implemented a special tax on quick property resales, also applying to homes owned for less than two years. According to the authors, Spain needs similar measures to limit short-term speculation and strengthen market stability.



Idealista notes that the tax would be levied on the full resale price, not just the profit, making the measure considerably stricter compared to international practices. However, the proposal includes exceptions in cases of forced sales—for example, due to serious illness, the need to adapt housing for people with disabilities, or changes in family circumstances.

The package of proposals also includes the creation of a public rental contract register to track price dynamics in the market.

SwissInfo reminds that earlier Prime Minister Pedro Sanchez announced plans to introduce a temporary ban on property purchases by foreign buyers. He stressed that the restriction should apply to those with no ties to the country who acquire homes purely for speculation. “In 2023 alone, non-EU residents bought around 27,000 homes and apartments in Spain,” Sanchez noted, citing Canada and Denmark as precedents. A draft amendment was submitted to Congress alongside a proposal to impose a 100% tax on foreign real estate buyers.



Chances of approval remain slim—especially since in July 2025 Spain’s National Court ruled to equalize taxation for property owners regardless of citizenship. Previously, non-EU/EEA owners paid a higher rate of 24% on gross rental income and could not deduct maintenance costs, while EU citizens paid 19% and were allowed to offset expenses for repairs, utilities, or marketing. Judges referred to Article 63 of the Treaty on the Functioning of the EU, which guarantees free movement of capital, and emphasized that excluding non-residents contradicts Spain’s international obligations, including its tax treaty with the U.S.

Still, this legal win for foreign investors coincides with a general tightening of state policy in the real estate market. By 2028, Barcelona will revoke around 10,000 tourist rental permits. In Malaga, a three-year moratorium on new licenses has been in force since 2025. Menorca continues to ban new tourist rental registrations, and rules are changing in other regions as well.

Financial risks are also increasing due to fines. In the Balearic Islands, illegal rentals can be sanctioned with penalties of up to €500,000. Rental yields are declining further due to macroeconomic factors. According to INE, inflation in August 2025 stood at 2.7%, which nearly wipes out real rental returns— already modest in Spain at 4–5%.