Spain’s plan to tax non-EU property buyers faces parliamentary deadlock

Friday 27 March 2026 - 15:15

Spain’s controversial proposal to impose a steep tax on non-European Union property buyers has stalled in parliament, reflecting political divisions and the challenges of passing reforms under a minority government.

The plan, promoted by Prime Minister Pedro Sánchez, aimed to significantly increase taxation on foreign buyers from outside the EU, potentially reaching up to the full value of a property purchase. The measure was designed to curb speculative investment and make housing more accessible to local residents.

However, the proposal has struggled to gain sufficient backing in the Spanish Congress. With the government lacking a parliamentary majority, support from smaller political parties has proven uncertain, delaying progress on the legislation.

The initiative comes at a time when Spain is grappling with a severe housing shortage. Demand has outpaced supply in major urban centers such as Barcelona, contributing to rising property prices and reduced rental availability. Public concern over housing affordability has intensified in recent years, particularly since the pandemic.

Foreign buyers have played a notable role in the real estate market, accounting for a significant share of property transactions. While some policymakers argue that restricting external demand could ease pressure on prices, critics warn that such measures could discourage investment and harm the broader economy.

Political analysts note that disagreements among coalition partners and the proximity of future elections complicate efforts to advance the bill. As a result, the proposal remains under discussion, with no clear timeline for parliamentary debate or approval.