What Actually Happened
If you’ve been following the news from Spain lately, the headlines are hard to miss: Golden Visa cancelled, a proposed 100% tax on foreign buyers, Airbnb restrictions tightening, and a €23 billion state housing fund. Read the wrong article and you’d think Spain just closed its doors to anyone without a Spanish passport.
The reality is considerably more nuanced — and for EU citizens looking at the Costa del Sol, the picture looks different from the inside.
What Changed, What Didn’t
The Golden Visa programme — which granted residency to non-EU buyers spending over €500,000 on property — was officially ended on 3 April 2025. This affects American, British, Chinese, and Russian buyers who previously used property purchases as a path to Spanish residency. If you hold an EU passport, this was never relevant to you. You already have the right to live and work in Spain under freedom of movement.
The proposed 100% tax surcharge on property purchases by non-EU, non-resident buyers is exactly that: a proposal. Announced by Prime Minister Sánchez in January 2025, it hasn’t passed parliament and faces significant opposition. Most legal experts consider the full 100% figure politically motivated rather than practically realistic — consensus points toward a more moderate 10–20% surcharge, if anything passes at all. EU citizens are explicitly exempt from this proposal.
Short-term rental restrictions are real and accelerating. Municipalities across Spain are capping or banning new tourist rental licences. Andalucía has been tightening the rules for years, and community associations increasingly vote to prohibit short-term lets in residential complexes. This matters if rental income is part of your plan — but it’s been the direction of travel for a while, not a sudden shift.
España Crece: The Supply Side
Behind the headlines about taxes and restrictions, something bigger is happening. The Spanish government has launched “España Crece,” a sovereign wealth fund allocating €23 billion toward building 15,000 affordable rental homes per year. Spain estimates it’s short at least half a million homes, and this is the first serious attempt to address the supply gap.
This won’t directly affect the Costa del Sol’s private market — nobody is building affordable rentals in Nueva Andalucía. But it signals a government that’s treating housing as a structural priority rather than a talking point.
Between the Lines
Here’s what the news coverage tends to miss: for EU citizens — Swedes, Dutch, Polish, German, French, and anyone else holding an EU passport — the competitive landscape just shifted.
The golden visa buyers are gone. The speculative non-EU investors face either a new tax burden or enough uncertainty to sit on the sidelines. The Airbnb restrictions reduce competition from short-term rental investors who were buying properties purely for yield.
What remains is a market with the same fundamentals that made the Costa del Sol attractive in the first place — 320 days of sunshine, a cost of living that makes Northern Europe feel expensive, excellent healthcare, and property prices that remain a fraction of Stockholm, Amsterdam, or London — but with fewer people competing for the same properties.
Agents on the coast are reporting slower enquiry volumes from non-EU markets. Some sellers are adjusting expectations. None of this means prices are collapsing — the market remains healthy — but it does mean there’s more room for conversation than there was twelve months ago.
What You Should Actually Know
If you’re an EU citizen considering the Costa del Sol: your legal position hasn’t changed. You can buy, own, sell, and live in Spanish property exactly as before. The Golden Visa was never yours to lose. The proposed tax explicitly doesn’t apply to you.
What has changed is timing. Fewer foreign investors means less upward pressure on prices. The uncertainty in non-EU markets creates a window that EU buyers can step into without hurry, but with awareness. The people who bought on the Costa del Sol during the 2008–2014 period — when uncertainty kept everyone else away — tend to agree on one thing: the best decisions are made when the noise is loudest and the fundamentals are still sound.
We’re not telling you to rush. We’re telling you to pay attention.
Frequently Asked Questions
Can EU citizens still buy property in Spain?
Yes. Nothing has changed for EU citizens. You can buy, own, and live in Spanish property exactly as before. The Golden Visa abolition and proposed tax surcharge apply exclusively to non-EU, non-resident buyers. EU freedom of movement guarantees your right to purchase property in any member state.
What is the 100% property tax in Spain?
It's a proposal — not a law — announced by PM Sánchez in January 2025 to impose a 100% surcharge on property purchases by non-EU, non-resident buyers. It hasn't passed parliament and most experts consider the full amount unrealistic. A more moderate 10–20% surcharge is the consensus prediction. EU citizens are explicitly exempt.
Is Spain's Golden Visa still available?
No. Spain officially ended its Golden Visa programme on 3 April 2025. Non-EU citizens can no longer obtain residency through property investment of €500,000 or more. Alternative residency routes remain available, including non-lucrative visas and digital nomad visas.
Can I still rent out my Spanish property on Airbnb?
It depends on your location and community rules. Andalucía requires a tourist rental licence for stays under 2 months, and many municipalities are capping new licences. Additionally, residential community associations can vote to ban short-term rentals. Check local regulations and community statutes before buying if rental income is part of your plan.