Javier Vinuesa analyses the legal risks of the 100% tax on non-EU investors | El Confidencial

The proposal to impose a 100% tax on the purchase of property by non-EU residents could breach the free movement of capital, warns Javier Vinuesa, partner at Gómez-Acebo & Pombo.

Parliament has proposed a supplementary state tax that would levy a 100% charge on the transfer of real estate to non-EU buyers, which would, in practice, exclude these investors from the Spanish property market. Javier Vinuesa explains that this measure could infringe Article 63 of the Treaty on the Functioning of the European Union, which guarantees the free movement of capital— a freedom already upheld by the Court of Justice of the EU in similar cases.

From a domestic perspective, Vinuesa points out that this tax could be considered confiscatory, potentially raising constitutional concerns. He also warns that the European Commission is likely to initiate infringement proceedings against Spain, which could result in a ruling against the country and the reimbursement of unduly collected sums.

Ultimately, the Gómez-Acebo & Pombo partner warns that this initiative, far from solving problems in the property market, could trigger a major legal and economic conflict for Spain.

Read more