Huge boost for UK expats as Spanish tax rule 'quietly forgotten'

Brits looking to move abroad, whether it's to retire or as a digital nomad, have often looked at Spain as the ideal destination as it offers close proximity to the UK and plenty of sunshine.

Plans revealed in 2025 to tax foreign property buyers at 100% instantly killed off the dream of moving to Spain for many wannabe-expats. Prime minister Pedro Sánchez and the Spanish Socialist Workers' Party (PSOE) planned to slap the massive tax on any non-European residents buying Spanish property, effectively doubling the cost of your dream casa.

However, it now appears the plans are being 'quietly forgotten' according to Spanish media. Majorca Daily Bulletin has reported: "The proposed 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."

This essentially means the plans are deadlocked and Brits may be looking to Spain as a viable expat destination once more. The news comes as Spanish estate agent idealistareleased a report on the cheapest destinations to buy across the country, with hidden gems that may have been overlooked by most expats.

And it's good news for those who love sun-soaked villages and unspoilt coastlines. A quarter of the cheapest 25 places to buy in Spain fall in Andalusia on the south coast. The cheapest place across the entire country, and its islands, is a village called Fuente Obejuna about two and a half hours from Seville. It's a classic Spanish mountain village with whitewashed buildings and cobbled streets, and current listings include a three-bedroom house with traditional tiled decor for €59,500 - about £50,650.

Unsurprisingly, it's much cheaper to buy a home inland and away from Spain's beaches, with many of the ten cheapest towns and villages found in Castilla y Leon in the north and Castilla-La Mancha in the centre of the country. The latter is home to Spain's second cheapest place for home buyers: Pedro Muñoz. Just under three hours from Valencia, this small town is surrounded by vineyards and close to lagoons, and you're a short drive from historic Campo de Criptana, famous for its windmills.

If you'd rather stick to a Spanish Island, idealista revealed the cheapest places to buy, although they still tend to be significantly more expensive than the mainland. In the Balearics, Petra in Majorca was the cheapest place per square metre, although the cheapest property currently available is a three-bedroom house for €309,900 (about £263,900).

In the Canaries, Santa Maria de Guia on the island of Gran Canaria is the cheapest place to buy, and expats can find unique properties such as a four-bedroom cave house for €69,990, which is just under £60,000.