Jaime Díaz de Bustamante warns of the legal and economic damage caused by the new tax on non-EU investors | Expansión

A new bill introduced in the Spanish Congress proposes a 100% tax on property purchases by non-EU residents.

Jaime Díaz de Bustamante, partner at Gómez-Acebo & Pombo, warns that this measure, together with other recent legislative initiatives, could seriously undermine Spain’s attractiveness to international investors.

The new state-level indirect tax would apply to property transactions not subject to VAT, and would coexist with the Property Transfer Tax (ITP), allowing only a deduction for the ITP already paid. In practice, this could exclude non-EU buyers from the market—key players in sectors such as residential tourism and hospitality.

The measure adds to an increasingly restrictive regulatory landscape, including the Housing Law, higher ITP rates in Catalonia, and attempts to remove tax benefits for REITs (SOCIMIs). According to Díaz de Bustamante, these policies increase legal uncertainty, raise investment costs, and reduce housing supply, contributing to upward pressure on prices.

As an alternative, the expert calls for policies that encourage investment, streamline development processes, and strengthen legal certainty as a path to restoring balance in the housing market.

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