British expats in Spain could face a whopping 100% surcharge on empty second homes under new government plans

Published: 04:18 EDT, 2 October 2026 | Updated: 04:20 EDT, 2 October 2026 British expats with property in Spain could be hit with a 100 per cent tax under new proposals. The country's government, led by the Spanish Socialist Workers' Party, have suggested that local authorities should be given the power to enact a surcharge on homes.A 50 per cent tax could be applied to properties left empty for two years – while those left for three years could be hit with a 100 per cent charge. Under the proposals, homeowners with two or more abodes could be hit with a maximum surcharge of 150 per cent, The Telegraph reports. Town halls in areas that are battling with overtourism could also be allowed to charge holiday homes more council tax, and they will have to pay 10 per cent VAT.In Spain, property owners pay an Impuesto Sobre Bienes Inmuebles which is a municipal property tax. Properties left empty in Spain for two years could be charged a 50 per cent taxIt applies to Spanish residents, non-residents, holiday home owners and companies that own property, Taxadora explains. The charge ranges from 0.4 per cent to 1.3 per cent, and is based on the value of the property as well as the tax rate set by the municipality.Alex Radford, from My Lawyer In Spain, told The Telegraph: 'The law gives town halls that have housing stock under pressure the ability to charge more local rates for properties rented out as tourist properties.'However, he described the proposed measures as a 'plaster' and argued the country 'needs to build more properties and make the planning permission process more efficient and quicker'.Spain has been struggling with a housing shortage for some time as the popular destination continues to attract foreign holidaymakers who buy up rental homes. In 2023 alone, non-EU residents bought 27,000 properties in Spain. According to official data, Spain had about 321,000 homes listed as holiday rentals in November 2024.This represents a 15 per cent increase from 2020 – and there are thought to be many more that operate without an official licence.Foreigners made up 20 per cent of all buyers last year, unchanged from a year earlier. Brits remained the largest group of foreign purchasers, at around 8 per cent, preliminary official data showed. Meanwhile those left for three years could be hit with a 100 per cent chargeIt comes as Spain has been forecast to become the world's most-visited country by 2040. According to research by Deloitte and Google, France is on course to lose its title and be replaced by the summer holiday favourite for Britons. Spain is expected to take the lead with 110 million inbound visitors, pushing France to second place with a projected 105 million. This would mark a huge leap for Spain; the country welcomed 97 million visitors last year, which was an all-time high according to the National Institute of Statistics.However, the destination has been battling with overtourism in recent years. In August, thousands of protesters took to the streets of Majorca to stand against the matter.Residents complained of rising housing costs from holiday rentals or foreign nationals' second homes as well as congestion in once-quiet towns and villages.One of the demonstrators held up a poster which said in English: 'No more second homes while locals can't afford one.'