Spain votes on 29 November, about eight months earlier than planned. Most news covers who will win. For expats with property, rental income or significant wealth in Spain, the result could matter more than the headlines suggest. Here’s what could change for your money, what probably won’t, and where you may want to check your own position.

The short version

• Buying property? The proposed 100% tax on buyers from outside the EU has stalled, and at this stage, it remains unclear whether it will return.
• Renting out property? Rental rules could be influenced by the result. They could tighten or loosen.
• Net wealth above €3 million? A new government could propose changes to the national solidarity tax on large fortunes
• Drawing a UK or US pension? So far, no party has proposed changes to how Spain taxes it.
• Holding investments? Markets barely moved when the vote was called. .

What happened

Congress rejected two emergency housing laws on 2 October. Prime Minister Pedro Sánchez called a snap election three days later, about eight months early. The laws followed nationwide protests over the televised eviction of a Madrid woman aged 87, whose rent had jumped from €500 to €2,650 a month.

The government has since passed the housing laws again. A standing committee of 69 MPs will accept or reject them, possibly around 12 November.

Housing is now the main issue of this campaign. The Spanish Socialist Workers’ Party (PSOE) leads the current government. The Popular Party (PP) and Vox are the main opposition, and their housing plans look very different. That’s why property owners should pay attention.

What could change for you

Buying property

In January 2025 the government proposed a 100% tax on homes bought by non residents from outside the EU. For a UK or US buyer, that could have roughly doubled the price. Parliament never debated it. The bill lapsed when parliament dissolved, and the current housing laws do not include it.

Reporting suggests a PP government would drop the idea. A PSOE government could revive it, but it would probably face a challenge under EU law.

The PP has also promised to cut VAT and transfer tax by 60% on first homes for young buyers. Vox wants zero VAT on first homes. These pledges target young first time buyers, so check whether you’d qualify.

Renting out property

For expat landlords, this is an important factor. The PSOE and its allies want tighter rules on holiday, seasonal and room rentals, along with tax breaks for landlords who renew without raising rent. The PP and Vox want to scrap the 2023 Housing Law, which would remove rent caps in high pressure areas. If you own a holiday let in Málaga or a flat in Barcelona, the two outcomes point in opposite directions.

Wealth and inheritance tax

Your region sets most of these taxes, not the national government. Andalusia and Madrid have fully switched off regional wealth tax. Most other regions still charge it.

The national solidarity tax on large fortunes sits on top. It applies to net wealth above €3 million wherever you live, minus any regional wealth tax you already pay. A national government created it, so a national government could scrap or change it. Vox has proposed abolishing wealth and inheritance tax altogether. The PP has not made a national pledge yet.

If your wealth is well below €3 million, regional wealth tax rules may have a greater impact on your tax liability.

What probably won’t change

• How Spain taxes UK or US pensions. So far, no party has proposed changes. Full manifestos aren’t out yet, and we’ll watch for this.
• The 100% tax on buyers from outside the EU. It lapsed with the old parliament and isn’t part of the current housing laws.
• Your investments, for now. Markets barely moved when the vote was called. The IBEX index stayed flat and Spanish government bonds held steady.

Questions to ask yourself

The election does not necessarily require immediate action, but understanding your current financial position may help you prepare for potential changes. These questions assess your circumstances and consider how future changes could affect you: :

1. Does your net worth, including property and investments abroad, come close to €3 million?
2. Do you earn rental income in Spain, and would tighter or looser rental rules change your plans?
3. Do your will and estate plans reflect the inheritance rules in your region today?
4. If you plan to buy in Spain, does your timing depend on a tax that may never pass?

If any answer is “not sure”, that’s a good place to start.

You don’t need to know who will win to answer these questions. They depend on your own situation, and they matter whatever the result.

Elections create a lot of noise. Headlines will swing between promises and warnings until 29 November, and for weeks after.

The big risk isn’t the election itself. It’s making a large decision in a hurry, based on a headline. Knowing where you stand today gives you time to think clearly once the picture settles.

Sources

• Reuters via Internazionale: What to know about Spain’s November snap election
• Anadolu Agency: Spanish Congress rejects both housing decrees
• Maldita: The standing committee and the housing decrees
• The Local Spain: Will the 100 percent tax on foreign buyers ever pass?
• Brains RE News: What each party proposes on housing
• Osborne Clarke: Spain’s solidarity tax on large fortunes
• Costa Luz Lawyers: Andalusia keeps wealth tax abolition