Thinking of Moving to Spain in 2025? Here’s What You Need to Know

Spain is making bold changes to tackle its housing crisis: a 100% tax on properties for non-EU buyers, stricter rules on Airbnb rentals, and the end of golden visas. With overtourism and skyrocketing rents fueling local unrest, the country is prioritizing homes for residents. Find out how these measures could affect your plans!

If Spain has been on your radar as a dream destination for relocation, it’s time to take a closer look at the country’s upcoming housing policies. With a housing crisis fueled by overtourism and the rise of short-term rentals, Spain is introducing significant changes to protect local residents and curb foreign influence on its property market.

A 100% Tax on Non-EU Buyers

In a bold move, the Spanish government plans to impose a 100% tax on properties purchased by non-EU residents. Prime Minister Pedro Sánchez has called this measure “unprecedented” but necessary to address skyrocketing rents in cities like Barcelona and Madrid, where platforms like Airbnb dominate the market.

In 2023, 27,000 properties were purchased by non-EU buyers not for personal use but as investment opportunities, Sánchez revealed. Foreign buyers, including EU citizens, currently account for about 15% of the housing market, according to official records.

The proposed tax aims to discourage speculative purchases and prioritize housing for local residents. While it won’t outright ban non-EU citizens from buying property, it could make the prospect financially unfeasible for many. Sánchez has yet to provide a timeline or detailed plan for implementing this tax.

Who Is Affected?

EU citizens are exempt from this new tax due to Spain’s obligations as a member of the European Union. Existing property owners, regardless of nationality, are unlikely to lose their properties under the new policy. However, the government may introduce higher capital gains taxes in the future.

Tackling Tourism to Ease the Housing Crisis

Spain has been grappling with the effects of overtourism, which has not only strained its housing market but also sparked local unrest. In 2024, the country welcomed a record 94 million international visitors, the highest number ever recorded.

To address the issue, some cities are taking drastic measures. Barcelona, for instance, announced a plan to phase out tourist flat licenses by 2028. The city has already frozen new licenses since 2014, capping the total at around 10,000 units.

Protests against overtourism have also been on the rise. In July 2024, 3,000 Barcelona residents took to the streets with chants of “tourists go home,” even spraying visitors with water. Similar demonstrations have occurred in the Balearic and Canary Islands, as residents blame tourism for rising rents and limited housing availability.

The End of Golden Visas

Adding to the tightening measures, Spain has moved to abolish its golden visa program, which previously granted residency to wealthy foreigners investing at least €500,000 in real estate. The program, which also allowed visa-free travel within the Schengen Area, had been criticized for driving up property prices in major cities and worsening housing unaffordability for locals.

A New Era for Spain’s Housing Market

Spain’s sweeping reforms signal a turning point for its housing policies. While the changes aim to address pressing issues like unaffordable housing and overtourism, they also pose new challenges for foreign buyers and investors.

For those planning to move to Spain, understanding these new measures will be crucial to navigating the country’s evolving real estate landscape. Whether these policies will effectively solve the housing crisis or lead to unintended consequences remains to be seen.