Buying property in Spain as a UK buyer: the complete post-Brexit guide

British buyers can still buy property in Spain exactly as before, with no restrictions on foreign ownership, but Brexit changed almost everything around the purchase: how long you can stay, how you are taxed as an owner, and which visa you need to spend a full season here. The purchase mechanics are the same as for any buyer; the consequences of being a non-EU citizen are what catch people out. This guide covers what actually changed and how UK buyers handle it on the Costa Blanca and Costa Cálida.

What Brexit actually changed

Since 1 January 2021 UK nationals are third-country citizens in the eyes of the EU. Property ownership itself was never affected, and there is no extra permission or higher price for British buyers. What changed is your immigration status (you are now a visitor unless you hold a visa), your tax rate as a non-resident owner, and your access to healthcare. None of these stop you buying; they shape how you use and hold the property afterwards.

The 90/180-day rule

UK passport holders can spend a maximum of 90 days in any rolling 180-day period across the Schengen area without a visa, under the Schengen Borders Code. That is roughly three months out of every six, and it counts every Schengen country, not just Spain. For owners who want a long summer or to overwinter, 90 days is the hard ceiling on visa-free stays. Track your days carefully, because overstaying risks entry bans. Buyers who want more than this apply for a residence visa before travelling.

Visas for staying longer than 90 days

Two routes cover most second-home buyers. The non-lucrative visa suits retirees and anyone with passive income: you prove sufficient funds (a multiple of Spain's IPREM income benchmark) and private health cover, and you agree not to work. The digital nomad visa, introduced under the 2023 Startup Law, suits remote workers employed by non-Spanish companies. Both are applied for at a Spanish consulate in the UK before you move, and both can lead to longer-term residence. Your abogado or a specialist immigration lawyer handles the paperwork.

Getting your NIE

Every foreign buyer needs an NIE, the Número de Identificación de Extranjero, before signing a purchase contract or completing. Apply at a Spanish consulate in the UK or at a Policia Nacional office in Spain. Brexit did not change this requirement, but consular demand has risen, so book early, ideally before you view show homes.

Moving money from sterling to euros

Currency is where British buyers most often lose money without noticing. A new-build bought off-plan is paid in staged instalments over the build period, so you convert GBP to EUR several times, and the exchange rate moves between each payment. High-street banks typically apply a weaker rate plus transfer fees; specialist currency brokers usually offer tighter spreads and let you fix a rate in advance with a forward contract. On a purchase of several hundred thousand euros, the difference between a bank rate and a broker rate can run into thousands of pounds.

Mortgages for non-resident British buyers

Spanish banks lend to non-residents, but on tighter terms than to residents. Expect a maximum loan of around 60 to 70 percent of the bank's valuation (not the purchase price), so a larger deposit is needed than in the UK. Lenders assess your income and existing debts, and the mortgage is secured on the Spanish property. Rates and conditions vary between banks, so it is worth comparing offers or using a broker; the Banco de España publishes the reference rates that most variable mortgages track.

Taxes and costs on a new-build purchase

New-build property in Spain is subject to IVA (VAT) at 10 percent, plus AJD stamp duty, which is set regionally and is typically around 1.5 percent in the Valencian Community that covers the Costa Blanca. On top of that come notary fees, Land Registry fees, and your lawyer's fee. As a working figure, budget roughly 13 to 15 percent of the purchase price for taxes and costs on a new-build, over and above the price itself. These rates are the same for British and EU buyers; Brexit did not raise the cost of buying.

Ongoing taxes are where non-EU status bites

Once you own, the key Brexit change appears. Non-resident owners pay tax on either rental income or a notional imputed income if the home is for personal use. Residents of EU or EEA countries are taxed at 19 percent and can deduct expenses; non-EU owners, which now includes UK residents, are taxed at a flat 24 percent with no expense deductions, under the Agencia Tributaria non-resident income tax rules. You will also pay annual IBI (local property tax) and, above regional thresholds, wealth tax. Factor the 24 percent rate into any buy-to-let sums.

Healthcare

UK pensioners who receive a UK state pension can register for Spanish public healthcare using an S1 form, which the UK government issues. Everyone else, including non-lucrative and digital nomad visa holders, needs comprehensive private health insurance, both to qualify for the visa and to be covered day to day. The GHIC card covers emergencies during short visits only, not residence.

The purchase itself is unchanged

Beyond immigration and tax, the buying process is identical to that for any international buyer: appoint an independent abogado, verify the developer's building licence and bank guarantee on your deposit, sign the private contract, and complete before a notary. For the full step-by-step mechanics, read our guide to buying new-build property in Spain.