Navigating Spanish property law in 2025 and 2026: Legal changes for foreign buyers

If you work in Spain’s property sector – whether advising clients as a lawyer or guiding them as an estate agent – you’ll already have noticed how quickly the ground is shifting.

Spanish property law in 2025 has introduced reforms designed to stabilise the rental market, deter speculative investment, and rebalance the responsibilities of landlords and tenants. At the same time, proposals for 2026 hint at even more significant restrictions on international investment.

These changes directly affect how you advise foreign buyers, many of whom come with high expectations but limited understanding of real estate compliance in Spain. In this article, we look at some of the recent changes, how they could impact your clients, and what might be on the horizon.

Key changes in Spanish property law in 2025

Rental market reforms for landlords and investors

If your client is buying property with the intention of letting it out, there are a number of rules that are particularly relevant in 2025.

The most significant change is the way rents are updated. Until this year, landlords often relied on inflation as the benchmark for annual increases, which led to sharp rises during the recent inflationary spike. From January 2025, all rent reviews must use the new IRAV index published by Spain’s National Statistics Institute. The aim is to smooth out volatility and prevent steep hikes in stressed rental markets. For investors who built their business case on strong year-on-year rental growth, this represents a real shift.

Costs are another area where expectations need to be managed. Since the 2023 Housing Law, landlords – not tenants – are responsible for paying agency fees and rent-default insurance. It is a rule that is now firmly in effect, and something you should flag early when advising international buyers.

Finally, the definition of who counts as a ‘large property owner’ continues to have practical implications. Nationally, the threshold remains ten dwellings, but the 2023 Housing Law granted regional governments the power to reduce that to five in stressed areas. In 2025, several communities have begun using that power, meaning some investors are subject to stricter controls much sooner than they might expect.

Taxation and fiscal pressures on foreign buyers

Tax policy has become one of the government’s sharpest tools for reshaping the housing market, and 2025 brings a mixture of incentives and penalties that you’ll need to explain clearly to international clients.

On the incentive side, recently introduced IRPF deductions are now taking effect for the first time in tax returns filed this year. Landlords who rent to young tenants, public entities or non-profit organisations can benefit from substantial relief, and those who renovate before letting enjoy further reductions.

In the most favourable cases, taxable rental income can be cut by as much as 90 %. For overseas investors, these deductions can transform the yield calculation – but only if they meet the strict qualifying conditions.

At the same time, the state is taking a harder line on vacancy. The Housing Law of 2023 empowered local councils to levy surcharges of up to 150 % on the IBI for homes that have stood empty for more than two years when the owner has several properties. In 2025, more municipalities are beginning to apply this power. The intention is to push more housing back into circulation, but for investors it creates a significant ongoing liability if a property is left idle.

Another layer is the waste-management tax mandated under Law 7/2022. By April 2025, all municipalities were required to introduce a cost-reflective fee or tax for household waste. Each council sets its own rules on who pays and how it’s calculated, and while in some areas the cost is modest, in others it is already controversial. Either way, it’s one more recurring charge that needs to be factored into ownership costs.

For foreign buyers unfamiliar with the layers of real estate compliance in Spain, these fiscal obligations can come as a shock. As their adviser, it’s crucial that you highlight them early.

Short-term rentals – compliance risks to watch

Holiday rentals have long been a magnet for foreign buyers, but this is also the area where the law has tightened most visibly. What was once a relatively straightforward route into the market is now layered with new obligations and local checks.

Since April 2025, communities of owners have held the power to decide whether a flat can be used for tourist accommodation. Any owner planning to let short-term must first secure prior approval, with a three-fifths majority required.

On top of that, communities can increase the common expenses for units used as tourist lets by up to 20% – a rule that has been available since 2019 but is increasingly being exercised in practice.

The rules around licences have also become less predictable. As of 3 April 2025, tourist licences no longer transfer automatically with a property sale. In several regions, new owners must reapply for permission even if the flat was previously licensed. For international clients who expect a ready-made rental business to come with the property, this can be an unwelcome surprise.

As their adviser, you should make sure due diligence goes beyond the basics. Checking community agreements, confirming local licensing rules, and noting any regional moratoria are now important steps in assessing a property’s potential for tourist use. Taking these precautions early will help you set realistic expectations for clients and avoid surprises later in the transaction.

Faster evictions and property protection

Concerns about squatters have long been a sticking point for international investors, and the legal process to recover possession has historically been slow and frustrating.

A reform passed in December 2024 – later consolidated in Organic Law 1/2025 – has started to change that picture. It introduced a fast-track procedure for certain unlawful occupation cases, giving courts the tools to order eviction far more quickly than before. Once a ruling is made, police are now empowered to intervene without delay, closing what had long been a loophole for those exploiting legal backlogs.

The press often refers to a ‘15-day’ timeframe, and while this is more a headline shorthand than a statutory guarantee, the direction of travel is clear – cases that previously dragged on for months are already being resolved much faster. For international clients who may leave properties vacant for long stretches, this provides a much-needed sense of reassurance.

Of course, clients shouldn’t drop their guard entirely, but you can present this as evidence that the Spanish system is responding to investor concerns. Clearer, faster remedies are now available – and that makes ownership in Spain feel less risky than it did only a year ago.

The end of the golden visa

April 2025 marked the closure of Spain’s golden visa programme – the residency-by-investment route that had, for more than a decade, allowed non-EU nationals to secure residence permits by purchasing property worth at least half a million euros.

In practice, only a minority of foreign buyers used the scheme, but it carried outsized symbolic weight. For many international investors, the golden visa was shorthand for Spain’s openness to outside capital. Its removal therefore represents more than the loss of a residency option – it signals a decisive shift in political priorities.

For professionals like you, the practical consequence is that clients motivated by residency must now look to other immigration pathways. The broader implication, however, is reputational: the end of the golden visa underlines Spain’s determination to limit the role of foreign capital in its housing market.

Looking towards 2026: Potential restrictions for foreign buyers in Spain

If 2025 was the year of refining obligations, 2026 could bring measures that fundamentally alter Spain’s appeal to foreign buyers. The debate is no longer just about rent caps or tax surcharges – it is about whether international investors should be allowed to buy at all.

The headline proposal is a 100% surcharge on the property transfer tax for non-EU, non-resident buyers. In practical terms, this would double the tax bill on acquisition and make Spain one of the least welcoming markets in Europe for outside capital.

Legal experts have already raised serious doubts about whether such a measure would withstand constitutional or EU law scrutiny, but its very announcement has created uncertainty. For many clients, the perception of risk matters almost as much as the letter of the law.

Alongside the tax proposal, ministers have floated an even more radical idea – a complete ban on non-EU, non-resident individuals purchasing property unless they or their families live in Spain. At this stage it remains only a political discussion, but the fact that it is being discussed at all is enough to affect buyer sentiment. Some international clients are already asking whether Spain is closing its doors.

For you as a property professional, the challenge is to strike a balance in your advice. On the one hand, you need to reassure clients that these proposals are not yet law and may never pass. On the other hand, you cannot ignore the shift in tone: the political climate has moved towards greater restriction, and foreign investment is clearly under scrutiny. That awareness – and your ability to explain it with clarity – will be vital to maintaining credibility with international buyers as 2026 approaches.

What this means for you as a property professional

The common theme across these reforms is complexity. Foreign buyers may assume that rental licences transfer automatically, that tax liabilities are straightforward, or that policy shifts will not affect them.

Your role is to dispel these misconceptions and provide clarity. The value you add lies in explaining the law as it stands today, while also preparing your clients for possible changes in 2026.

You’ll also need to ensure that your practice remains compliant in a fast-changing legal landscape. This is where our Payments platform can help. By consolidating payment history, secure communication, and built-in identity checks, you can streamline compliance and focus on offering your clients a great service.

If you want to find out more about our platform and how we can help, speak to an expert at Redpin.

FAQs about Spanish property law for foreign buyers

Can foreign buyers still obtain residency through property purchases in Spain?

No, Spain’s golden visa programme ended in April 2025. Property purchases no longer grant automatic residency rights.

What taxes do foreign buyers pay on Spanish property in 2025?

Non-resident buyers face property transfer tax (ITP) or VAT, annual IBI, potential surcharges for empty homes, and new waste-management levies depending on municipal rules. Read this guide on Spanish property tax for more details.

Will Spain ban non-EU buyers in 2026?

A full ban is under political discussion, but it has not yet been approved. Legal experts suggest constitutional and EU challenges could prevent it from becoming law.