Spain's controversial plan to impose a 100% tax on property purchases by non-European residents has been quietly abandoned, according to Spanish media reports. The proposed measure, announced in 2025 by Prime Minister Pedro Sánchez's Spanish Socialist Workers' Party (PSOE), had effectively doubled the cost of buying a home for British expats and other non-EU buyers, crushing dreams of relocating to the sun-drenched country.
The Majorca Daily Bulletin reported that the tax has not received parliamentary debate or committee scrutiny and was completely omitted from the government's latest housing reform package. The minority government lacks the parliamentary majority needed to pass the measure, leaving the proposal deadlocked.
Cheapest Places to Buy in Spain Revealed
With the tax threat lifted, many Brits are once again considering Spain as a viable expat destination. Spanish estate agent idealista has released a report on the cheapest destinations to buy across the country, highlighting hidden gems that may have been overlooked by most expats.
Andalusia on the south coast offers a quarter of the cheapest 25 places to buy in Spain. The cheapest location nationwide is Fuente Obejuna, a classic Spanish mountain village about two and a half hours from Seville, featuring whitewashed buildings and cobbled streets. Current listings include a three-bedroom house with traditional tiled decor for €59,500 (approximately £50,650).
Inland and Island Bargains
Unsurprisingly, it is much cheaper to buy a home inland away from Spain's beaches. Many of the ten cheapest towns and villages are found in Castilla y Leon in the north and Castilla-La Mancha in the centre. The second cheapest place is Pedro Muñoz in Castilla-La Mancha, less than three hours from Valencia, surrounded by vineyards and close to lagoons, with easy access to historic Campo de Criptana, famous for its windmills.
For those preferring Spanish islands, idealista revealed the cheapest spots, though they remain significantly more expensive than the mainland. In the Balearics, Petra in Majorca is the cheapest per square metre, with a three-bedroom house available for €309,900 (about £263,900). In the Canaries, Santa Maria de Guia on Gran Canaria offers unique properties such as a four-bedroom cave house for €69,990 (just under £60,000).
Regional Highlights
In the Valencia region, which includes Benidorm and Alicante, the cheapest spot is the small mountain town of Utiel, known for its dry climate and mild winters.
Spain's 10 cheapest places to buy a home based on idealista asking prices:
- Fuente Obejuna - Andalucia
- Pedro Muñoz - Castilla–La Mancha
- Bembibre - Castilla y Leon
- Vilamarin - Galicia
- Espinosa de los Monteros - Castilla y Leon
- Argamasilla de Alba - Castilla-La Mancha
- Almodovar del Campo - Castilla-La Mancha
- Arroyo de la Luz - Extremadura
- Quesada - Andalucia
- Campo de Criptana - Castilla-La Mancha
