As of the 3rd of April 2025, significant changes in Spain’s real estate market are set to affect non-EU buyers, particularly those looking to invest in Southern Spain. Recent developments include the end of Spain’s Golden Visa program and a proposed 100% tax on non-EU buyers. These measures, driven by political and economic shifts, may reshape the market and limit opportunities for non-EU investors.
Here’s what you need to know:
1. End of Spain’s Golden Visa Program (3rd of April 2025)
- The Golden Visa allowed non-EU citizens to gain residency by investing at least €500,000 in Spanish real estate.
- This program has been instrumental in attracting foreign investment, particularly in high-demand areas like the Costa del Sol.
- The termination aligns with Spain’s efforts to prioritize housing affordability for locals over foreign investments.
2. Pedro Sánchez’s Proposed 100% Tax on Non-EU Buyers
- The proposal introduces a steep tax for non-EU nationals purchasing Spanish property.
- Aimed at cooling foreign demand, especially in popular areas such as Southern Spain, where competition with local buyers has significantly driven prices upward.
- If enacted, this policy will significantly increase acquisition costs, potentially deterring new investors.
What Does This Mean for Non-EU Buyers?
- Time-Sensitive Opportunity:
- The Golden Visa window closes in April 2025, meaning there’s still time to secure residency through real estate investment.
- Acting now ensures buyers can benefit before this lucrative pathway ends.
- Increased Costs Ahead:
- If the 100% tax proposal is implemented, which needs to be passed by congress first, property prices for non-EU buyers could effectively double, drastically altering investment feasibility.
Why Buy on the Costa del Sol Now?
- Prime Properties Still Available: Luxury homes, beachfront apartments, and golf resort villas are in high demand but accessible now.
- Lifestyle and Value: The Costa del Sol offers unmatched quality of life, with over 300 days of sunshine, excellent infrastructure, and international communities.
- Residency Benefits: For now, purchasing property still offers potential residency advantages.
The combination of policy changes marks a pivotal moment for non-EU buyers. With the Golden Visa ending and a proposed tax looming, the time to act is now for those eyeing real estate on the Costa del Sol. If you’re considering an investment, secure your property before these opportunities vanish. Contact me today to find your dream home in Spain.
