Moving to the Costa del Sol from the UK

Moving to the Costa del Sol from the UK: what changed after Brexit

Moving to the Costa del Sol from the UK is still entirely achievable, but the rules changed fundamentally once the UK left the EU. British nationals are now treated as third-country nationals, which means you can no longer simply move to Spain and stay. As a visitor you may spend a maximum of 90 days in any 180-day period across the Schengen area, so anyone planning to live on the Costa del Sol year-round (Marbella, Estepona, Fuengirola, Mijas, Benalmadena or anywhere along Malaga province) needs a residence visa arranged before the move.

This guide covers the two things that matter most for a permanent relocation: securing the right visa, and understanding the true cost of buying and holding a new-build home in Andalusia, including the taxes that catch many buyers out. For deeper detail on individual topics, see our related guides on non-resident taxes in Spain, buying new-build off-plan, and getting a Spanish mortgage as a non-resident.

Visas: your route to living on the Costa del Sol

The Golden Visa (residence by property investment) was abolished on 3 April 2025 and is no longer an option for new applicants.⁷ For UK nationals wanting full-time residence, three realistic routes remain.⁷

Non-Lucrative Visa (NLV)

The most common choice for retirees and those living on savings, a pension or passive income. You must prove you will not work in Spain and that you have sufficient means: the threshold is set at 400% of the IPREM index, which in 2026 works out at roughly 28,800 euros per year (about 2,400 euros per month) for the main applicant, plus around 600 euros per month for each dependent family member.⁷ You must also hold private health insurance until you qualify for public cover.

Digital Nomad Visa (DNV)

For people working remotely for employers or clients based outside Spain. This route allows you to work legally while resident and can carry favourable tax treatment in the early years.⁷

Entrepreneur or work routes

For those starting an innovative business (with a supporting ENISA report) or taking up qualifying employment.⁷ Whichever route you choose, note that the 90/180-day visitor rule applies until your residence card is issued, so plan the paperwork well ahead of the move.

The cost of buying a new-build home in Andalusia

New-build property (obra nueva) is taxed differently from resale. Instead of the Impuesto sobre Transmisiones Patrimoniales (ITP), which is 7% on resale homes in Andalusia,¹ a first-hand purchase from a developer attracts two taxes:

That gives a combined tax cost of about 11.2% on a new-build home.¹ On top of the taxes, budget for notary fees, Land Registry fees and legal or conveyancing costs, which together typically add another 1% to 2%. As a rule of thumb, allow roughly 12% to 14% of the purchase price in taxes and buying costs for a new-build. Reduced AJD rates exist (for example 0.3% for buyers under 35 on a habitual home up to 150,000 euros, or 0.1% for large families and people with a disability up to 250,000 euros), but these apply to a Spanish habitual residence and rarely fit a UK buyer’s first purchase.¹

Off-plan protection: Ley 57/68

If you buy off-plan, stage payments made before completion must be protected by a bank guarantee or insurance policy under the successor rules to Ley 57/68. Never hand over deposits without that protection in place, and check the guarantee names you as beneficiary.

Mortgages for UK (non-resident) buyers

Spanish banks lend to non-residents, but on stricter terms than to residents. As a post-Brexit non-EU buyer you should typically expect a maximum loan-to-value (LTV) of around 60% to 70% of the lower of the purchase price or the bank’s valuation.³ In practice that means a deposit of 30% to 40% of the price, plus the 12% to 14% in taxes and costs on top.³ On a 300,000 euro new-build, that points to roughly 90,000 to 120,000 euros of deposit plus around 36,000 to 42,000 euros of taxes and fees.³ Lenders will want proof of income, existing debts and tax returns, and you will need a Spanish NIE (Numero de Identidad de Extranjero) before you can complete on any purchase or open the associated accounts.

Taxes you pay every year as an owner

IBI (council tax equivalent)

Every property owner, resident or not, pays IBI (Impuesto sobre Bienes Inmuebles) annually to the local town hall. It is based on the cadastral value (valor catastral), not the market price, with urban rates typically between 0.4% and 1.1% depending on the municipality.⁴ You will find the cadastral value on the IBI bill, which you also need for other tax calculations.

Modelo 210 and non-resident income tax (IRNR)

This is the obligation UK owners most often overlook. If you own Spanish property but are not tax-resident here, you must file Modelo 210 for Non-Resident Income Tax (IRNR) each year, even if you never rent the home out.²⁵

• Imputed income (home left empty or for personal use): Spain deems a notional income of 1.1% of the cadastral value (2% if the value has not been revised since before 1994 or, under the current rule, in the last ten years). Non-EU residents, which now includes UK nationals, are taxed at 24% on that base.⁵⁶
• Rental income: Since Brexit, UK owners are taxed at 24% on gross rental income with no deductions for expenses, unlike EU/EEA residents who pay 19% on the net figure.² This is a material difference: letting out a Costa del Sol apartment is noticeably less tax-efficient for a UK owner than it was pre-2021.

What you owe when you sell

When a non-resident sells, the buyer must withhold 3% of the sale price and pay it to the Agencia Tributaria via Modelo 211 within one month; this is a payment on account of your capital gains tax, not an extra tax.⁸ The seller then files Modelo 210 to declare the actual gain (taxed at 19% for non-residents) and either pays the balance or claims a refund if the 3% withheld exceeds the tax due.⁸ You will also owe plusvalia municipal, a local tax on the increase in land value, which varies by municipality and lets you choose the calculation method that produces the lower bill.⁸

Healthcare and schooling

Healthcare

UK state pensioners can usually access Spanish public healthcare for free using an S1 form issued by the UK, which registers you into the Spanish system as a resident.⁹ If you are not eligible for an S1 (for example, an early retiree or a non-working resident), you will need private health insurance to obtain the visa, and after 12 months of registered residence (empadronamiento) you can join the public system through the Convenio Especial, a state pay-in scheme costing roughly 60 euros per month under 65 and about 157 euros per month from 65.⁹ Note the 12-month wait cannot be fast-tracked, so register on the padron at your town hall as soon as you move in.⁹

Schooling

The Costa del Sol has a wide choice of state, semi-private (concertado) and international private schools, with a large concentration of British-curriculum and IB international schools around Marbella, Estepona and the Malaga corridor serving relocating families. State schooling is free and available to resident children, while international schools charge fees; places at popular international schools fill early, so apply well ahead of your move.

A realistic order of play

1. Confirm your visa route (Non-Lucrative or Digital Nomad for most UK movers) and gather the income, insurance and clean-record evidence.
2. Apply for your NIE, which you need for buying, banking and tax.
3. Budget the full purchase cost: price plus about 11.2% in IVA and AJD, plus 1% to 2% in notary, registry and legal fees.¹
4. If borrowing, plan for a 30% to 40% deposit as a non-resident.³
5. Register on the padron on arrival, sort healthcare (S1 or private then Convenio Especial), and diarise your annual Modelo 210 and IBI.⁴⁵⁹

Get the visa and the tax planning right before you commit to a property, and moving to the Costa del Sol from the UK remains one of the most rewarding relocations in Europe. For the fine detail, read our companion guides on non-resident taxes, buying off-plan safely, and Spanish mortgages for foreign buyers.