Brexit and British residents in Spain

Brexit brought a wave of changes for the more than 300,000 British residents living in Spain, along with the hundreds of thousands of UK citizens who own a second home on Spanish soil. Since the UK officially left the European Union on 1 January 2021, property owners and would-be buyers have had to adapt to new residency rules, new tax obligations, and a shifting visa landscape that has continued to evolve through 2025 and into 2026.

If you're a UK citizen who owns property in Spain — or you're thinking of buying — this guide explains what has actually changed, what hasn't, and the options available to you today. We've updated this article with the latest regulatory changes, including the end of the Golden Visa programme and the arrival of new residency routes.

Important disclaimer: immigration and tax rules change frequently and depend heavily on personal circumstances. This article is for informational purposes only. Always consult a qualified Spanish immigration lawyer and a cross-border tax advisor before making decisions.

Brexit in one paragraph: what actually changed for property owners

Brexit is the agreement reached between the United Kingdom and the European Union that regulated the UK's departure from the European legal framework. The UK officially ceased to be an EU member state on 1 January 2021.

From that moment on, UK citizens stopped being EU citizens in legal terms — and that affects far more than just passports at the airport. Three areas are particularly relevant if you own property (or a share of one) in Spain:

• Residency and length of stay — how long you can actually remain in Spain each year.
• Tax treatment — especially rental income and annual non-resident obligations.
• Residency-by-investment pathways — which have changed dramatically in 2025.

The good news: property rights haven't changed. UK citizens can buy, own, inherit, and sell Spanish property on exactly the same terms as before. What changed is the fiscal and immigration framework around that ownership.

Tax changes for UK property owners in Spain: the truth about 19% vs 24%

This is where many articles online still get it wrong. Let's be precise, because these numbers matter.

What did NOT change: Capital Gains Tax on sale (still 19%)

Contrary to a widely repeated myth, Capital Gains Tax on the sale of Spanish property by non-residents remains at a flat 19%, exactly as it was before Brexit. Some outdated articles (including early post-Brexit ones from 2021–2022) claimed the rate jumped from 19% to 24%. This is incorrect. The 24% rate is the general IRNR (non-resident income tax) rate applied to certain other types of Spain-source income — not to capital gains on property transfers.

When you sell, the buyer still withholds 3% of the sale price via Modelo 211 and pays it to the Spanish Tax Agency on your behalf as an advance on your CGT. You then file Modelo 210 to either pay the remaining balance or reclaim any excess.

What DID change: rental income tax (19% → 24%) and lost deductions

If you rent out your Spanish home, this is where Brexit really bit. Before 2021, UK citizens — as EU residents — paid non-resident income tax on Spanish rental income at 19%, and could deduct expenses such as mortgage interest, IBI, community fees, repairs, insurance, and depreciation.

From 1 January 2021 onwards, UK citizens are treated as non-EU/EEA residents for Spanish tax purposes. That means:

• The tax rate on rental income rises from 19% to 24%.
• You can no longer deduct expenses. Tax is charged on the gross rental income, not the net profit.

In practice, a UK owner renting out a villa in Marbella or an apartment in Mallorca now pays significantly more tax on the same rental income than before Brexit. This is the real financial impact for most British property owners.

Annual imputed income (second homes not rented out)

If your property in Spain is a personal second home that you don't rent out, Spanish tax law still imputes a notional annual "income" equal to 2% of the cadastral value (or 1.1% if the cadastral value was revised after 1994). For UK non-residents, this imputed income is now taxed at 24% as well (up from 19%).

Plusvalía municipal

Unchanged by Brexit. This local tax on the increase in land value applies when you sell, regardless of your nationality.

Residency and time in Spain: the 90/180 rule (and ETIAS)

This is probably the question that causes the most anxiety — and rightly so.

Since Brexit, UK citizens are third-country nationals in the Schengen Area. The rule is clear and strict: you can stay in Spain (or any combination of Schengen countries) for a maximum of 90 days within any rolling 180-day period.

That means if you own a holiday home in Ibiza, Mallorca or the Costa del Sol and you're not a Spanish resident, you can legally spend roughly three months out of every six in Spain — and then you must leave the Schengen Area. Overstaying carries real consequences: entry bans, fines, and complications for future residency applications.

From 2026 onwards, UK travellers also need to factor in ETIAS (European Travel Information and Authorisation System), a mandatory pre-travel authorisation for visa-exempt non-EU citizens entering the Schengen Area. It's not a visa and doesn't change the 90/180 rule — but it's an extra step to complete before travelling.

If 90 days isn't enough for you — and for many second-home owners, it isn't — you need a proper residency visa.

Visa options for British citizens in 2026

This is where the 2022 version of this article is most out of date. Since 2022, Spain has introduced new visa routes and ended one of the most famous ones. Here's the 2026 picture:

Golden Visa: closed as of 3 April 2025

The Spanish Golden Visa — which since 2013 had granted residency to non-EU citizens investing €500,000 or more in Spanish real estate — was officially terminated on 3 April 2025 under Organic Law 1/2025. For over a decade, this was the flagship route for UK investors post-Brexit. It is no longer available for new applications.

Existing Golden Visa holders can continue to renew under the original rules, and applications submitted before 3 April 2025 are still being processed. But buying property in Spain today no longer gives you an automatic right to residency.

Digital Nomad Visa (Ley de Startups, active since 2023)

Introduced in December 2022, this visa is aimed at remote workers employed by non-Spanish companies (or freelancers with mostly foreign clients). It grants a 1-year initial residency, renewable up to 5 years, with access to a favourable flat tax regime on Spanish-source income for the first 4 years. For UK remote professionals who want to live in their Spanish home year-round, this has become the single most popular replacement for the Golden Visa.

Non-Lucrative Visa (NLV)

Designed for people who can support themselves without working in Spain — retirees, independently wealthy individuals, or those living off investments. Requires proof of passive income or savings (currently around €28,800/year for the main applicant, plus additional amounts for family members). You cannot work on this visa, which makes it ideal for retired British homeowners but not for those still earning.

Entrepreneur Visa

For UK citizens looking to launch an innovative business in Spain. Requires a viable business plan and approval from ENISA.

Still allowed: buying property as a non-resident

British citizens can continue to buy property in Spain freely. There are no nationality-based restrictions on property ownership. You'll need a Spanish NIE, a Spanish bank account, and proper legal representation — exactly as before Brexit. The only thing that's gone is the automatic residency that came with a €500,000+ purchase.

Does co-ownership make more sense post-Brexit?

Co-ownership is worth mentioning here because Brexit changed the economics of full ownership for many UK buyers. If your plan was to spend two or three months a year in your Spanish home, the combination of the 90/180 Schengen limit, higher rental taxation, and the loss of the Golden Visa route makes full second-home ownership less attractive financially — especially for a property that sits empty most of the year.

This is exactly the gap co-ownership was designed to fill. Instead of owning 100% of a property you only use 6–8 weeks a year, you own a meaningful share of a high-quality home and use it exactly the weeks you need. The running costs are split. The legal structure (a Spanish SL, with each co-owner holding shares) is handled professionally. And for UK buyers navigating the new post-Brexit reality, it often makes far more financial sense.

The bottom line for British property owners in Spain

Brexit didn't close the door on Spain for British buyers — but it did change the rules of the game. Today, the reality is:

• You can still buy property in Spain freely.
• Capital Gains Tax on sale is still 19% — not 24%, despite what many outdated articles still claim.
• Rental income and imputed income are now taxed at 24% with no deductions.
• The 90/180 Schengen rule applies, and ETIAS adds an extra step.
• The Golden Visa is gone, but the Digital Nomad Visa, Non-Lucrative Visa, and Entrepreneur Visa are real alternatives.

At VIVLA, our local legal team handles the full purchase and ownership process, and can advise you on the visa route that best fits your situation — so you can keep enjoying your place in the Spanish sun without the bureaucratic headache.

Get in touch with VIVLA to explore co-ownership options designed for the post-Brexit reality.