As a foreigner (or anywhere else in the world), it is important to have all the facts not only about the property market and prices but also about any new regulations that could affect the purchase process, potential returns, and tax liabilities. As of May 2025, there have been several new laws passed (and others proposed), that could impact buyers, mainly international buyers. To help anyone considering investing in Costa del Sol property, we’ve put together a summary of the current regulations, so that you know if there is anything new that you need to be aware of.
So far, there has been no change regarding the NIE (fiscal identity number), buying costs, transfer taxes and ongoing tax obligations. The following administrative rules and tax liabilities still apply:
The Spanish Golden Visa Programme ended on 3rd April 2025, closing the door on one of the most popular routes for non-EU investors to gain residency in Spain. The programme gave third-country nationals who invested €500,000 or more in property (or a business) access to residency. The reason that the scheme has been cancelled, is to try to ease the current property shortage in Spain.
However, all is not lost for non-EU nationals who want to enjoy the wonderful Mediterranean lifestyle on the Costa del Sol, the Digital Nomad Visa scheme is still running. This visa allows people to work remotely in Spain. It doesn’t offer permanent residency, but it does allow the holder (and their immediate family) to reside in the country for a number of years, as long as they reach the minimum salary threshold.
In January 2025, the Spanish government suggested a ban on non-EU nationals purchasing property in Spain, unless they already have family residing in the country. The purpose of this ban, is to prevent foreign property speculators from buying real estate on the Costa del Sol (and other popular areas of Spain) for profit. This initiative is part of a broader range of measures that have been floated as a solution to the housing shortage. Whether the proposal ever becomes law is still open to discussion.
Possibly the most controversial proposal to be presented by Pedro Sanchez, is a suggested 100% property tax on any property purchased in Spain by non-EU citizens. This means that the price of property is instantly doubled for anyone who lives outside of the EU. Again, this is a measure aimed at making properties more accessible to Spaniards, as opposed to wealthy international buyers. It is important to stress that parliament may not get this on to the statute books. So, watch this space!
The government has announced a swathe of reforms pertaining to landlords and tenants in Spain. In a nutshell, as a way to protect ‘vulnerable renters’, tenants now have the right to stay in their homes even after the rental contract ends (if the contract was signed after March 2019). If the renter wishes, the contract will be automatically extended for up to 5 to 7 years, depending whether it is owned by an individual or a company. The full extent of the potential impact can read in this article the Euro Weekly News.
There is a new ruling that will come into effect in 2030, that will affect any homeowner who plans to rent out or sell their property. In order to legally list the property for sale or rent, after the 1st January 2030, the property must adhere to set energy efficiency standards, achieving a minimum energy certificate of E. What’s more, in 2033, the minimum energy efficiency certificate will rise to D.
It looks like luxury new build property to buy on the Costa del Sol, could soon be in even shorter supply!
If you would like more information about new developments on the Costa del Sol or any other types of properties, contact Birgitte at [email protected] or call +34 683 391 512.
