Will Spain ban foreign non-resident home buyers?

In 2026, access to housing remains one of the main concerns among Spaniards. According to the latest Barometer of the Centro de Investigaciones Sociológicas (CIS), 42.6% of the population considers housing to be one of the country’s main problems, a figure that reflects growing social concern over rising prices and the lack of available homes.

In this context, property purchases by foreigners have come under political scrutiny, although the data shows a more nuanced reality. Specifically, according to figures collected between January and September 2025 by the Colegio de Registradores, only 13.58% of home buyers in Spain were of foreign nationality, compared to 86.42% of Spanish nationality.

Even so, in 2025 the Government publicly raised the possibility of introducing restrictions on home purchases by foreign non-residents, which led to doubts about whether Spain could end up banning this type of transaction. But what is the real situation today? Can Spain ban foreign non-residents from buying property?

How to Buy a House in Spain as a Non-Resident Foreigner

Is it illegal to buy a home in Spain as a foreign non-resident?

No. It is currently not prohibited to buy a home in Spain as a foreign non-resident.

As of today, any foreign individual — whether resident or non-resident, from the European Union or from outside the EU — can purchase property in Spain by complying with the usual legal requirements (identification, proof of origin of funds, tax obligations, etc.).

There is no law currently in force that prohibits the purchase and sale of homes to foreign buyers, nor has any reform been approved that generally restricts this right.

What did the Government propose in 2025 and why did this issue arise?

In 2025, discussions began about possible changes to property purchases by foreign non-residents as part of a broader set of measures aimed at improving access to housing in Spain, especially in areas facing higher real estate pressure.

Among the ideas put forward were:

• Limiting home purchases by non-EU foreign non-residents.
• Applying tax measures to discourage this type of transaction in certain territories.

These proposals created uncertainty among buyers and property owners. However, it is important to clarify that they did not result in effective legal changes. None of these measures were approved or entered into force, and as of today there is no general ban on buying property in Spain as a foreigner.

The current legal framework continues to allow property purchases by foreign buyers, including non-residents, under the same legal conditions as before.

For now, no general prohibition on property purchases by foreigners has been approved.

Canary Islands propose limiting home purchases not intended for residence

In 2026, the Government of the Canary Islands requested authorization from the European Union to limit the purchase of homes that are not intended as a primary residence in the archipelago, in response to strong pressure on the housing market.

According to data from the Canary Islands Executive, around 25% of the homes purchased in the Canary Islands are acquired by foreign non-residents, a proportion well above the national average. This situation has contributed to rising housing prices and greater difficulty for the local population in accessing property.

The proposal does not involve a general ban on purchases, but rather a limitation linked to the use of the property (whether it is used as a residence or not), and would require approval from the European Union. As of today, no legal change has been approved, and property purchases in the Canary Islands continue to be governed by the current regulations.

Would it be legal to ban property purchases by foreigners in Spain?

The answer depends on the buyer’s profile.

European Union citizens

Spain cannot prohibit citizens of other European Union countries from purchasing property. EU law protects the free movement of capital, which includes real estate investment. A ban based on nationality would be incompatible with the European legal framework.

Non-EU foreigners

In the case of non-EU foreigners, the legal margin is broader. However, a total ban would still be legally complex. Experts agree that:

• A general prohibition could conflict with the right to property.
• It is more viable to apply tax measures or specific limitations than to impose an absolute ban on purchases.

For this reason, the political debate has focused more on the use of taxes or targeted restrictions rather than on a direct prohibition.

Who would these measures affect if they were approved?

If, in the future, measures were approved to limit or prohibit property purchases in Spain by foreign non-residents, they would not affect all buyers equally.

In general terms, they would not affect:

• Spanish citizens.
• Citizens of the European Union.
• Foreign residents in Spain.

Potential limitations have mainly been considered for:

• Non-EU foreign non-residents.
• Property purchases for investment purposes, rather than as a primary residence.

The aim of this type of measure would be to reduce pressure in certain areas and curb rising prices, not to prevent foreign individuals who wish to live in Spain from buying a home.

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Can Spain ban UK non-residents from buying property after Brexit?

One of the nationalities that buys the most homes in Spain is British. After **Brexit**, UK citizens became classified as non-EU nationals. Even so, as of today, British buyers can continue to purchase property in Spain as usual.

Currently:

• There is no specific ban on British buyers.
• They can buy property under the same general conditions as other foreign non-residents.

That said, if in the future measures were approved targeting non-EU foreign non-residents, UK citizens could potentially be affected. However, as of today, no such change is in force.

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Canada: temporary ban on home purchases by foreign non-residents

Canada is one of the countries most frequently cited when discussing a ban on property purchases by foreign non-residents, as it has indeed implemented a specific measure in this regard.

Since 1 January 2023, the Prohibition on the Purchase of Residential Property by Non-Canadians Act has been in force — a federal law that temporarily prohibits the purchase of residential property by foreign non-residents. The aim of this regulation is to improve access to housing for the local population in a context of sharply rising prices.

This ban:

• Is temporary in nature (it has been extended until 2027).
• Includes exceptions, such as certain temporary residents or specific situations.
• Responds to its own legal and constitutional framework, which differs from the European one.

For this reason, although the Canadian case is often used as a reference in the international debate, it is not a model that can easily be transferred to Spain, especially due to the legal differences with the European Union.

United States: Trump’s proposal to limit home purchases by large investors

In the United States, the debate over access to housing has followed a different path from that of Europe. At the beginning of 2026, former president Donald Trump announced his intention to ban large companies and investment funds from purchasing single-family homes, as part of his proposal to curb rising housing prices.

Unlike what has been discussed in Spain or Canada, this proposal does not target foreign non-resident buyers, but rather the type of buyer. The focus is on limiting the mass purchase of homes by large institutional investors, regardless of their nationality, when these transactions are intended for investment rather than as a primary residence.

According to what was announced, the measure would aim to:

• Reduce competition between large funds and individual buyers.
• Prevent the accumulation of single-family homes as financial assets.
• Facilitate access to housing for families and local residents.

It should be emphasized that, for now, this is a political proposal and not a regulation currently in force. To be implemented, it would need to follow the corresponding legislative process in the United States.

This approach reflects an increasingly present international trend: not so much banning home purchases by foreigners, but rather limiting purchases by large investors — a different strategy from the one debated in Spain regarding foreign non-residents.

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What about the so-called “100% tax” on foreign buyers?

When discussing a ban on foreign non-residents buying property in Spain, the so-called “100% tax” is often mentioned. However, it is important to clarify what this proposal actually involves.

It is not a new tax currently in force, but rather a proposed tax measure aimed at discouraging property purchases by non-EU foreign non-residents. The idea would be to apply a tax surcharge equivalent to 100% of the property’s value at the time of purchase, which would significantly increase the cost of the transaction.

According to what has been proposed, this surcharge:

• Would not replace the usual taxes, such as ITP (Property Transfer Tax) or VAT (IVA) and AJD (Stamp Duty), but would be added on top of them.
• Would apply only to non-EU foreign non-residents.
• Would aim to reduce demand pressure in areas experiencing high housing tension.

It is important to emphasize that this 100% tax has not been approved and is not currently applied in Spain. It is a proposal that forms part of the broader debate on how to limit property purchases for investment purposes, but it has not become an actual tax obligation.

As of today, foreigners buying property in Spain continue to pay the same taxes as before, depending on whether the property is new or resale and on the Autonomous Community in which the property is located.

What you should keep in mind

By way of summary, these are some of the key points to bear in mind regarding the possible ban in Spain on foreign home purchases:

• It is not prohibited to buy property in Spain as a foreign non-resident.
• The proposals have focused on non-EU foreign non-residents, not on all buyers.
• A general ban would be legally complex; tax measures are more likely.
• Other countries, such as Canada or the United States, have adopted different approaches within different legal contexts.

Before making any decisions, it is always advisable to check the regulations in force at the time of purchase and to distinguish between political proposals and laws that have actually been approved.