At present, non-residents in Spain who transfer property located in Spain must pay a 35% tax on the capital gains generated (which is calculated using the difference between the net value of this transfer of property and the updated purchase price). This rate is much higher than the one for residents, which stands at 15%, (if more than one year has lapsed since the purchase took place). Due to official complaints lodged before the EU for unfair tax treatment towards non-residents, the Draft Bill of the Non-Resident Income Tax Reform Law echoes these complaints and establishes a new tax rate of 18% for when this reform comes into effect, which is scheduled for 1 January 2007.