The European Commission warned Spain on Wednesday that it is infringing the free movement of capital by taxing non-resident taxpayers on their homes used as their main residence in Spain; it will refer the case to the Court of Justice of the EU if no action is taken within two months.
According to Brussels, Spanish legislation requires foreign nationals to pay tax on their second homes, at a rate of 2% of their registered value, whereas taxpayers resident in Spain are exempt from this tax. It considers that these rules on the taxation of non-resident taxpayers for properties used as their main residence affect the free movement of workers and the free movement of capital.
The EU authorities opened infringement proceedings against Spain over this matter in June 2025, but following the lack of results in the first phase of the proceedings, they are now sending a reasoned opinion to the authorities, giving them a further two-month deadline to address the irregularities.
Should this dialogue prove fruitless, the EU Commission emphasises in a statement, it may proceed to the third and final stage of the infringement procedure and refer the case to the Court of Justice of the European Union (CJEU).
Buying property in Spain of course has a number of wonderful benefits, from stunning locations to a change in lifestyle. However, understanding property tax in Spain for foreigners is essential for making informed decisions and avoiding unexpected costs.
Whether you’re purchasing a holiday home or investing in a permanent property, working with professionals like tax advisers or mortgage brokers can streamline the process and help you to stay compliant with Spanish tax laws.