Since Brexit, many British citizens have been wondering if purchasing property in Spain is still a straightforward option. The good news is that UK nationals can continue to buy property in Spain just as before, but there are new legal and financial considerations to be aware of. Whether you are looking for a holiday home, an investment property, or a permanent residence, understanding the post-Brexit rules will help you plan your move with confidence.
Can UK citizens still buy property in Spain?
Yes, there are no restrictions on foreign nationals owning property in Spain, including those from outside the European Union. British buyers remain welcome in the Spanish property market, and there are still no nationality-based limitations on purchases. The right to buy has not changed, but the way you live in and use the property has become more regulated.
What legal requirements do you need to meet?
The first step is obtaining an NIE, or Número de Identificación de Extranjero. This identification number is required for all property transactions and is essential for signing deeds, paying taxes, and setting up utilities. If you plan to stay in Spain for more than 90 days in a 180-day period, you will also need to apply for a residency visa.
What additional costs should you budget for?
When buying property in Spain, the purchase price is only part of the cost. Buyers should expect to pay between 10% and 15% extra to cover transfer taxes or VAT, notary fees, registration costs, and legal services. These expenses vary depending on whether you buy a new-build or a resale property, as new homes are subject to VAT and stamp duty, while resale properties involve transfer tax. Engaging a qualified lawyer ensures that you have clarity on the total amount before committing to a purchase.
What are the tax implications for UK citizens?
Owning property in Spain comes with ongoing tax obligations. Property owners must pay the annual IBI (property tax) to the local council, along with any municipal fees such as rubbish collection. If you decide to rent out your property, as a non-EU citizen you will be taxed at 24% on your gross rental income, with no deductions allowed. By contrast, EU citizens pay 19% on their net income after expenses. If you eventually sell the property, non-resident UK citizens are subject to capital gains tax at 24%. Fortunately, the UK and Spain have a double taxation treaty, which means you can offset Spanish taxes against your UK liability to avoid being taxed twice.
Are visas or residency options necessary?
If your goal is to live in Spain permanently or spend more than the permitted short stays, you will need a visa.The non-lucrative visa allows long-term stays for those who can demonstrate sufficient financial means without working in Spain. Thes visa options are worth considering at the same time as your property search, as they affect how much time you can legally spend in your new home.
What are the post-Brexit challenges?
While property ownership itself has not been restricted, Brexit has introduced new layers of complexity. UK nationals are now classified as non-EU buyers, which has consequences for taxation and residency rights. There are also political discussions about limiting second-home ownership by non-residents or introducing additional property taxes for non-EU citizens. Although these are still only proposals, they highlight the importance of staying informed and seeking professional advice before purchasing.
Practical steps for UK buyers
Before you begin your property search, apply for your NIE and consider mortgage pre-approval if you require financing. Work with a reputable Spanish property lawyer who can carry out due diligence, review contracts, and ensure the transaction is secure. Be clear on the full costs, including legal fees and taxes, so you avoid surprises. Finally, keep an eye on potential legal or policy changes, especially those affecting non-EU buyers, as these could impact your rights and obligations in the future.
Final thoughts
Brexit has changed some of the conditions under which UK citizens buy and live in Spanish property, but it has not closed the door. The Spanish market remains open and attractive to British buyers, offering everything from holiday apartments to permanent family homes. With careful preparation and the right legal guidance, you can navigate the process confidently and avoid common pitfalls. At Albir Abogados, we specialise in helping British clients purchase property in Spain safely and legally, ensuring that your investment is protected and your move is as smooth as possible.