Brexit Impact on Buyers
How Brexit Affected British Buyers in Spain
Post-Brexit rules for UK buyers in Spain: residency, mortgages, tax, healthcare, and practical tips for purchasing property in 2026.
Key Changes Since Brexit
When the UK left the EU on 31 January 2020—with the transition period ending on 31 December 2020—British citizens lost their automatic rights as EU nationals. For the thousands of Brits who own property in Spain or plan to buy, the changes have been significant but entirely manageable.
The most important point: British citizens can still buy, own, and sell property in Spain without any restrictions. Spain imposes no nationality-based limits on property ownership. Your NIE (Número de Identidad de Extranjero) remains the only identification document required.
What has changed is everything surrounding the purchase. Before Brexit, UK nationals could live, work, and retire freely anywhere in the EU. Now classified as third-country nationals, British citizens face new rules:
- Residency: Stays in Spain (and the wider Schengen area) are limited to 90 days in any 180-day period without a visa. For longer stays, options include non-lucrative visas for retirees, digital nomad visas for remote workers, and investor visas.
- Withdrawal Agreement rights: Those already registered as residents before 31 December 2020 retained their rights under the Withdrawal Agreement and are largely unaffected.
- Border control: UK passport holders now use non-EU lanes and receive entry and exit stamps.
Read our legal requirements guide for a full overview of what you need before purchasing.
Finance, Tax, and Currency
One of the most notable post-Brexit shifts has been in mortgage access. Spanish banks still lend to UK nationals, but terms have tightened compared to EU residents.
Non-resident British buyers can typically expect loan-to-value ratios of 60–70%, versus up to 80% for EU residents. Lenders require more thorough documentation, including certified translations and UK credit reports. Interest rates may also be marginally higher. It pays to compare offers from multiple lenders—read our financing guide for detailed advice.
Tax obligations are where post-Brexit changes hit hardest. Whether or not you become a Spanish tax resident, owning property creates liabilities in both countries:
- Non-resident income tax (IRNR): Charged at 24% for non-EU nationals, up from 19% for EU citizens. This applies even if you don't rent out your property—Spain imputes a notional rental income.
- Capital gains tax: Non-EU sellers face a mandatory 3% retention at the point of sale.
- Inheritance tax: Some Spanish regions offer generous allowances to EU nationals that British heirs may no longer qualify for. A Spanish will is essential for proper estate planning.
Currency volatility adds another layer of risk. Sterling fell sharply after the 2016 referendum and remains unpredictable against the euro. A 5% swing in GBP/EUR can add or remove thousands from your budget. Using a specialist currency broker rather than a standard bank transfer can save significant money.
For full details on costs, see our buying costs and taxes guide. Have specific questions about financing or tax? Our FREE Expert Panel can connect you with Brexit-specialist advisors—ask your question on PropertyInvestmentSpain.com.
Mortgage Access
UK buyers can still get Spanish mortgages at 60–70% LTV with additional documentation requirements
Higher Tax Rates
Non-EU residents now pay 24% imputed income tax versus 19% for EU nationals
Inheritance Planning
Regional tax allowances may not extend to British heirs—a Spanish will is essential
Currency Risk
GBP/EUR volatility can significantly affect your total property budget
Healthcare and Travel
Before Brexit, British residents in Spain accessed healthcare through the EHIC and bilateral agreements. The system has changed substantially.
The GHIC (Global Health Insurance Card) has replaced the EHIC for UK nationals. It covers emergency and medically necessary treatment during temporary visits to EU countries, but not planned medical care or long-term needs. British retirees receiving a UK state pension can apply for an S1 form to access Spanish public healthcare as residents. For everyone else, private health insurance is typically required—both for visa applications and everyday cover.
Private health insurance costs €60–€150 per month depending on age and coverage level, and is a practical necessity for British property owners spending extended time in Spain. See our healthcare guide for more detail.
The 90/180-day Schengen rule is where many British buyers feel the change most keenly. If you plan to use your Spanish property for more than occasional holidays, you need to explore residency. Our residency guide walks you through the options.
For British buyers drawn to the Costa Blanca—particularly popular towns like Jávea, Moraira, Calpe, Dénia, and Benitachell—the local expat community remains strong. Estate agents and lawyers in these areas have deep experience helping UK buyers navigate post-Brexit requirements. Need personalised guidance? Ask our FREE Expert Panel for advice tailored to your situation.
Practical Tips for 2026
Plan Residency Early
If you want to stay longer than 90 days, begin your visa application well before your intended move date. Processing times vary and delays are common.
Get Independent Legal Advice
A bilingual lawyer with post-Brexit expertise is essential for protecting your interests. See our legal guide for what to look for.
Budget for Higher Costs
Factor in the 24% non-resident tax rate, currency risk, lower LTV mortgage limits, and private health insurance when calculating your true budget.
Make a Spanish Will
Protect your heirs from unfavourable inheritance tax rules that may no longer extend EU-level benefits to British nationals.
Use Currency Specialists
Avoid losing thousands through poor exchange rates. A specialist broker can lock in favourable rates and time your transfers strategically.
Need Expert Advice?
Ask Our Free Expert Panel
Have specific questions about how Brexit affects your property plans in Spain? Our panel of Brexit, legal, and property specialists provides free, personalised answers to help you buy with confidence.
Explore Properties
