Can Non-EU Buyers Still Buy Property in Tenerife with the 100% Tax Threat?
Here’s the 2025 Buyer’s Guide You Didn’t Know You Needed
1. What’s Really Happening?
In early 2025, Spain proposed a controversial law: a 100% “complementary tax” on used properties bought by non-EU, non-resident buyers. That means paying double the ITP (Spain’s transfer tax). For a €400,000 resale home, your tax jumps from €28,000 to €56,000. But here’s the thing, this is just a proposal. It’s still under debate and faces potential EU legal challenges for discrimination.
2. Why It Matters for You
If you’re a non-EU buyer without Spanish residency:
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You’d pay double tax on used properties.
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New builds are safe — only VAT (10%) applies.
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Already have or plan to get residency? You’re likely exempt.
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EU buyers are unaffected.
So, this isn’t a ban, it’s a cost shift.
3. Quick Table: Your Options at a Glance
|
Scenario |
What It Means |
|---|---|
|
New Build |
VAT only – no extra tax |
|
Used Property – Non-EU |
Double ITP (if non-resident) |
|
With Spanish Residency |
Standard ITP – no surcharge |
|
EU Buyer |
Unaffected |
4. What You Should Do Now
🔍 Explore new developments — tax-transparent and modern.
🛂 Check if you qualify for residency (Golden Visa, NLV).
⚖️ Follow the law’s progress — nothing’s final yet.
🤝 Work with an expert team who handles property, legal, and tax together.
5. What’s Next?
A decision is expected in mid-2025. Exemptions may apply to the Canary Islands, and EU courts could block or modify the law if it’s ruled discriminatory. In the meantime, structure your purchase smartly, and stay flexible.
If you’re serious about buying in Tenerife, now’s the time to act strategically not emotionally. Speak to professionals who understand both local market dynamics and the evolving legal framework. Whether it’s structuring your deal to avoid overpaying, securing residency, or simply choosing the right type of property, a proactive approach will save you thousands. And remember: these changes are not meant to exclude, but to regulate with the right plan, non-EU buyers can still thrive here. Don’t let uncertainty stop you. Let it push you to make smarter, more informed decisions with confidence.
💡 Bottom Line: Non-EU buyers can still buy — but how you buy (used vs. new, with or without residency) will make all the difference.
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