Buying a home in Spain as a UK buyer after Brexit

What has not changed for UK buyers

You can buy freely, on the same terms as any other buyer. The process, the notary and the land registry are exactly the same.

• You need an NIE, like any foreigner.
• Spanish banks still lend to British buyers, usually 60 to 70%.
• Purchase taxes are the same: 10% VAT and 1.2% AJD on a new build in Andalusia.

The 90 days in every 180 rule

Since 2021, British citizens are third-country nationals for the EU. Without a residence visa, you can spend at most 90 days in any 180-day period in the Schengen area, counting all the countries together.

Taxes: the biggest change for UK buyers in Spain

As a non-EU resident, your IRNR on the property is 24% instead of 19%. If you rent it out, you are also taxed at 24% on gross income, without deducting costs such as community fees or IBI.

1. Deemed income if not rented: 1.1% or 2% of the cadastral value, at 24%.
2. Rental: 24% on what you receive, filed quarterly.
3. Sale: 19% on the gain, with 3% of the price withheld.

We explain it with examples in non-resident property taxes. Also review the Spain-UK double taxation treaty with your adviser.

Inheritance and wills: the detail many forget

If you own a home in Spain, also make a Spanish will before a notary covering only your assets here. It makes things much simpler for your heirs.

The EU Succession Regulation lets you choose the law of your nationality for your estate, including if you are British. Tell the notary when drafting the will. It costs little, around €50-100, and saves months of paperwork.

Practical tips if you are buying from the UK

• Use a currency transfer company for the large payment: the difference versus your bank can run to thousands of euros.
• Consider a power of attorney so you do not have to travel for each signing; see buying with a power of attorney.
• If you want to spend the winter, start the non-lucrative visa months in advance.
• Choose an area near the airport if you will come and go often.

The areas with the largest British communities are Mijas, Fuengirola, Benalmádena and Estepona. For example, Arosa in Torrenueva or Mane Residences in Benalmádena.