Spain Proposes 100% Tax on Non-EU Resale Property Purchases — What It Means for You, and Why Now Is the Time to Buy in the Costa del Sol

Spain’s Prime Minister Pedro Sanchez has recently proposed a significant tax measure that could impact property buyers from outside the European Union, particularly British and American investors. The proposal entails a 100% tax on the purchase of resale properties by non-EU nationals. If enacted, this would effectively double the cost of acquiring second-hand homes in Spain for non-EU buyers.

 Key Points of the Proposal

• Applicability: The proposed tax targets resale properties; new developments are exempt.
• Status: The measure is currently a proposal and requires approval by the Spanish Parliament.
• Timing: Purchases completed before the law is enacted will not be subject to the additional tax.

Why the Costa del Sol Remains a Prime Investment Opportunity

Despite the proposed tax changes, the Costa del Sol continues to offer robust investment potential, especially for non-EU buyers considering property acquisition in Spain.

Impressive Property Price Growth

The region has experienced significant property price increases over the past two years:

• Málaga Province: Saw a 9% price increase between 2023 and 2024, surpassing the national average of 10.7%.
• Marbella: Reported a 12% annual increase in property prices in 2024, reflecting strong demand in the luxury and second-home market segments.
• Coastal Areas: Properties near Andalusia’s beaches appreciated by 7-9% in 2024 due to limited supply.

Strong International Demand

The Costa del Sol continues to attract international buyers:

• In 2024, foreign buyers accounted for 90% of all luxury property purchases in the region.
• The “Golden Triangle” of Marbella, Estepona, and Benahavís saw luxury property investments totalling €3.2 billion, a 20% increase from the previous year.

Limited Supply and High Demand

The region faces a shortage of new developments due to regulatory hurdles and land scarcity, leading to:

• High occupancy rates in existing properties.
• Continued upward pressure on property prices.

Act Now: Secure Your Investment Before Potential Tax Changes

If you’re a non-EU national considering purchasing property in Spain, now is an opportune time to act:

• Avoid Additional Taxes: Purchasing before the enactment of the proposed tax ensures you won’t be subject to the additional 100% levy on resale properties.
• Benefit from Market Growth: Investing now allows you to capitalize on the ongoing appreciation in property values.
• Explore New Developments: With new properties exempt from the proposed tax, exploring developments in the Costa del Sol offers a tax-efficient investment pathway.

Contact Us for Personalized Assistance

Our team specializes in guiding international buyers through the Spanish property market.

We can assist you in:

• Identifying suitable new developments exempt from the proposed tax.
• Navigating the purchasing process efficiently.
• Providing up-to-date information on market trends and legislative changes.

Don’t miss this window of opportunity. Contact us today to begin your journey toward owning a piece of the beautiful Costa del Sol.