Proposed 100% tax on non-EU home buyers lapses as Parliament is dissolved

What happened

On 6 October 2026 the BOE published Royal Decree 806/2026 of 5 October, which dissolved Congress and the Senate and called a general election for Sunday 29 November 2026. When Parliament is dissolved, bills that have not finished their passage lapse. The Congress record for bill 122/000196, the Socialist group’s proposal to promote affordable rented housing, now shows it as concluded and lapsed (caducado) from 6 October 2026.

That bill, registered on 22 May 2025 and published on 30 May 2025, contained the much-reported state tax of up to 100% of the value of homes bought by people and companies not resident in the EU. It would have reached buyers living in the UK, the US and other non-EU countries. It was still waiting for its first debate in the full Congress (the toma en consideración) when it lapsed, so it was never debated.

What it means for buyers

There is no extra national tax for non-EU buyers. A resale home in Mallorca pays Balearic transfer tax on the same scale for every buyer, and a new build from a developer pays VAT and stamp duty, again with no surcharge by nationality or residence. Our guide to buying costs and taxes sets out the rates. What does depend on residence is the yearly income tax a non-resident owner pays: see taxes for owners.

What is still uncertain

Nothing stops a future government from bringing back a similar idea. In Mallorca, the opposition party Més per Mallorca has also asked the Balearic Parliament, through a non-binding motion registered in October 2026, to urge the national government to ban home purchases by non-residents. On 13 October the Balearic housing minister said, as reported by the Majorca Daily Bulletin, that the government would not limit second-home purchases. None of these is a law or a bill in force. We will report any formal bill if one is registered.