Buying After Brexit: What Changed for UK Buyers

Buying property on the Costa del Sol after Brexit is still entirely possible for UK nationals, and the transaction itself works much as it did before. What changed is your legal status: since 1 January 2021 the United Kingdom is a third country outside the EU and the EEA, and that reclassification quietly reshaped the annual tax you pay as an owner, your right to spend time in your Spanish home, and how you access healthcare. This guide sets out, for the whole Costa del Sol, exactly what changed for UK buyers and, just as importantly, what did not.

What did not change when you buy

The purchase taxes on a Costa del Sol new build are identical for residents and non-residents, and Brexit did not touch them. On a new-build home bought from a developer in Andalusia you pay 10% IVA (VAT) plus stamp duty (AJD) at 1.2% in Andalusia, so roughly 11.2% in tax. ¹² On top of that, budget for notary fees of about 0.5% to 1% and Land Registry fees of about 0.3% to 0.5% of the price, both set by regulated scales, plus legal fees. ² As a rule of thumb, allow around 12% to 14% over the headline price for a new build. Resale homes instead pay transfer tax (ITP), which is a separate topic covered in our new-build IVA and AJD guide.

The mechanics are also unchanged. You still need an NIE (Numero de Identidad de Extranjero) before you can sign, you still complete before a notary, and the deed is still registered at the Land Registry. Off-plan deposits are still protected by bank guarantee under Ley 57/68. None of this depends on EU membership, so a UK buyer follows the same conveyancing path as before.

The biggest change: annual tax as a non-resident owner

This is where Brexit bites. Non-resident owners pay Spanish Non-Resident Income Tax (IRNR) through Modelo 210, and the rate depends on whether you are resident in the EU/EEA or in a third country. As UK residents are now third-country residents, the headline IRNR rate rose from 19% to 24%, and you lost the right to deduct expenses. ³⁴

If you let the property

Before Brexit, EU and EEA landlords were taxed at 19% on net rental income and could deduct costs such as IBI, community fees, insurance, repairs, mortgage interest and depreciation. As a UK resident today you pay 24% on the gross rent with no deductions allowed. ³⁴ On a property returning, say, 12,000 euros of rent with 4,000 euros of costs, an EU resident would be taxed on 8,000 euros, while a UK resident is taxed on the full 12,000 euros, and at a higher rate. Note a developing point: a landmark Spanish court ruling has opened the door for some non-EU owners to deduct expenses, but the position is still evolving, so treat deductibility cautiously and take advice. ⁵

If you keep it for your own use

Even an empty second home that is never let triggers imputed income tax (renta imputada). The taxable base is 1.1% of the cadastral value (2% where the value has not been revised in the last ten years), and the rate applied to that base is now 24% for UK owners rather than 19%. ⁵ You declare it on Modelo 210 by 31 December of the following year. Separately, your town hall bills annual IBI (local property tax) based on the cadastral value, which is unaffected by Brexit. Both are covered in our community fees, IBI and cost-to-own guide.

Selling later: the 3% retention still applies

When a non-resident sells, the buyer must withhold 3% of the price and pay it to the Agencia Tributaria via Modelo 211 within one month. ⁶ This is a payment on account of your capital gains tax, not an extra tax, and it applied before Brexit too. You then file Modelo 210 within four months to declare the actual gain and either reclaim the excess or pay the balance. ⁶ The non-resident capital gains rate is commonly applied at 19%. ⁷ There is genuine debate over whether third-country sellers should face 24% rather than 19%, so confirm the current position with a Spanish tax adviser before you sell. Our guide to selling as a non-resident goes into the mechanics.

Your right to spend time here: the 90/180 rule

The change UK owners feel most is on the calendar. As a third-country national you may now stay in Spain, and the wider Schengen area, for a maximum of 90 days in any rolling 180-day period without a visa. ⁸ Owning a home does not extend that allowance. From the second half of 2026, visa-exempt visitors including Britons will also need ETIAS, a pre-travel authorisation costing around 7 euros and valid for multiple short stays, alongside biometric checks under the new Entry/Exit System. ⁹

To live in your Costa del Sol home for longer you need a residence visa. Two common routes for UK buyers are:

• The non-lucrative visa (NLV), for those with passive income who will not work in Spain. For 2026 you must show around 2,400 euros per month (400% of IPREM), plus about 600 euros per month for each dependant. ⁸¹⁰
• The digital nomad visa (DNV), for remote workers and freelancers with mostly non-Spanish clients, requiring roughly 2,849 euros per month (200% of the minimum wage) in 2026. ¹²

Note that Spain abolished the golden visa (residence by property investment) on 3 April 2025, so buying a home is no longer a route to residency, though holders who applied before that date keep their rights. ¹¹¹³ These routes are set out in more depth in our non-lucrative visa and digital nomad visa guides.

Mortgages: tighter terms for UK buyers

Spanish banks still lend to Britons, but as non-residents you borrow less. Non-resident buyers are typically capped at 60% to 70% of the bank valuation, and some lenders treat UK post-Brexit applicants more conservatively at 50% to 60%, so plan for a deposit of 30% to 40% plus purchase costs. ¹⁴¹⁵ This is a lending-policy difference rather than a legal ban, and stronger financial profiles secure better terms. Our mortgage deposit and LTV guide for non-residents explains the application process.

Healthcare and pensions

UK state pensioners moving to Spain can still export their NHS entitlement using the S1 form, which remains valid after Brexit and gives access to the Spanish public system with the cost reimbursed by the UK. ¹⁶ The GHIC (successor to the EHIC) covers only necessary treatment during short visits, not residency. If you are under pension age and not working in Spain, a visa such as the NLV requires comprehensive private health insurance. On tax, the UK-Spain double taxation treaty continues to govern which country taxes your pension and prevents you being taxed twice, so read alongside our double taxation treaties and retiring in Spain guides.

Practical takeaways for UK buyers

1. Buying costs are unchanged: allow around 12% to 14% over the price for an Andalusian new build. ¹²
2. Budget for higher annual tax: 24% on gross rent or on imputed income, with limited or no deductions. ³⁵
3. Plan your time: 90 days in any 180, plus ETIAS from late 2026, unless you hold a residence visa. ⁸⁹
4. Expect a larger deposit if you need a mortgage. ¹⁴¹⁵
5. Keep the 3% retention in mind for any future sale. ⁶

Brexit made owning a Costa del Sol home more of an administrative and tax exercise for UK nationals, but it did not close the door. With a good lawyer, a gestor for your Modelo 210 filings and realistic planning around the 90/180 rule, buying after Brexit remains straightforward. For the next steps, read our guides on new-build purchase costs, non-resident taxes and residency options.