Taxes for UK Buyers Buying Property in Spain (Costa del Sol)

Important — please read first. This guide is general information only and is not legal, tax or financial advice, nor a substitute for it; it does not take account of your personal circumstances. Spanish and UK tax rules are complex, differ by region and change by tax year. The rates and thresholds below are the general Andalusian and Spanish national figures in force at the review date (28 July 2026), confirmed against the official sources listed at the end. Before any purchase or filing decision, confirm every figure for your own situation with a qualified, independent tax adviser and a registered (colegiado) lawyer in both Spain and the UK. eVoost publishes this as editorial reference material and accepts no liability for decisions taken on the basis of it.

In short: After Brexit, UK buyers are treated as non-EU/EEA for Spanish tax. In Andalusia, a new-build carries 10% VAT (IVA) + 1.2% stamp duty (AJD); a resale carries 7% transfer tax (ITP) instead — never both [1]. A non-resident owner pays annual IRNR at the non-EU rate of 24% (versus 19% for EU/EEA) and generally cannot deduct rental expenses [2][3]. On a sale, the buyer withholds 3% of the price against the seller’s capital gains, taxed at 19% [4][5]. The UK–Spain Double Taxation Convention (2013) prevents double taxation — Spanish tax paid is generally credited against the UK liability — but income and gains must still be reported to HMRC on the SA106 ‘Foreign’ pages [6][10].

Post-Brexit, a UK national buying in Spain is a non-EU/EEA citizen — which affects the tax rate, reporting obligations and how long an owner may stay, and is less favourable than for EU residents. This guide covers the taxes at purchase, during ownership and at sale, focusing on what is typically different for a UK resident, plus how residency and the treaty work.

Purchase Taxes in Andalusia: New-Build vs. Resale

The tax at purchase depends on whether the home is a new-build (obra nueva) from a developer or a resale (segunda mano) from a private owner — mutually exclusive routes.

• New-build: IVA (VAT) at the national rate of 10% of the price, plus stamp duty (Actos Jurídicos Documentados, AJD), generally 1.2% in Andalusia [1].
• Resale: No IVA or AJD. Instead, Property Transfer Tax (Impuesto de Transmisiones Patrimoniales, ITP), a general rate of 7% in Andalusia [1].

Nationality does not change these purchase taxes — a UK buyer pays the same as anyone else. Reduced rates (e.g. 3.5% ITP or 0.1% AJD) exist for specific protected profiles such as under-35s or large families [1]. Being a UK (non-EU) buyer starts to matter in the ongoing and exit taxes below.

Ongoing Taxes for UK Non-Resident Owners

A non-resident UK owner generally faces two recurring Spanish taxes each year.

• IBI (Impuesto sobre Bienes Inmuebles): Local property tax paid to the town hall (Ayuntamiento) by every owner, resident or not. It is calculated on the registered cadastral value (valor catastral) at a municipally set rate, so it varies town to town.
• IRNR (Impuesto sobre la Renta de no Residentes): Non-resident income tax, declared on Modelo 210 [7]. Here UK/non-EU status matters:
• Personal use: Spain taxes a deemed (imputed) income of 1.1% or 2% of the cadastral value (1.1% where that value was revised from 2012 onward; otherwise 2%), then applies the non-resident rate — 24% for a UK resident [3][2].
• Rental income: UK residents are generally taxed at 24% on gross rent with no expense deductions, versus 19% on net rent (after eligible expenses) for EU/EEA residents — the biggest post-Brexit change for UK landlords [2].

Selling Your Spanish Property

On a sale by a UK non-resident, three taxes can arise.

• 3% withholding (retención): The buyer must withhold 3% of the sale price and pay it to the Agencia Tributaria on Modelo 211, as an advance against the seller’s capital gains tax [4]. This applies to all non-resident sellers.
• Capital gains (within IRNR): The gain (sale price minus acquisition cost and eligible expenses) is taxed at a flat 19% for non-residents, declared on Modelo 210 [5]. If the 3% withheld exceeds the final liability — e.g. on a small gain or a loss — the difference can be reclaimed; if short, the balance is due.
• Plusvalía municipal: A local tax on the increase in the value of the urban land, generally payable by the seller; method and amount are set municipally — confirm both with the relevant Ayuntamiento.

Tax Residency and the UK–Spain Treaty

Tax residency is the decisive factor; under the treaty a person is resident in only one country at a time.

• Spanish tax residency: Generally triggered by more than 183 days in Spain in a calendar year, or where Spain is the centre of one’s economic or vital interests (main business or immediate family) [8]. A Spanish tax resident is taxed on worldwide income.
• UK tax residency: Determined by the Statutory Residence Test (SRT) — days in the UK and connecting ties [9].
• Treaty tie-breaker: If resident in both countries, the UK–Spain Double Taxation Convention (2013) tie-breaker resolves it — permanent home, then centre of vital interests, then habitual abode [6].

Separately from tax: as non-EU citizens, UK nationals may generally spend a maximum of 90 days in any 180-day period in the Schengen area without a visa or residence permit — which in practice keeps most holiday-home owners below the 183-day tax threshold.

The UK Layer: Relief From Double Tax, But You Must Report

The treaty is designed to prevent the same income or gain being taxed twice — but it does not remove the UK reporting duty.

• Credit relief: Spain generally has the primary right to tax income and gains from Spanish property; the Spanish tax paid (on rent or a sale gain) can generally be claimed as Foreign Tax Credit Relief against the UK tax on that same income [6][10].
• HMRC Self Assessment: A UK resident must declare worldwide income and gains. Spanish rental income and any gain go on the ‘Foreign’ pages (SA106), where credit for the Spanish tax paid is then claimed [10][11].

How a UK buyer typically settles Spanish property taxes

1. Obtain a NIE (Número de Identificación de Extranjero) — mandatory to buy, bank or pay tax.
2. Open a Spanish bank account for the price and taxes.
3. Pay the purchase tax after signing the deed (escritura) at the notary: IVA + AJD on a new-build, or ITP on a resale, on Modelo 600/601. In Andalusia the deadline is two months from the day after signing the deed (for taxable events on or after 1 January 2022) — usually handled by your lawyer; confirm it, as late filing carries surcharges [12].
4. Register ownership at the Land Registry (Registro de la Propiedad), then set up annual IBI by direct debit with the town hall.
5. File annual IRNR on Modelo 210 — imputed income by 31 December of the following year; rental income periodically [7].
6. Declare on your UK Self Assessment — Spanish rental income and gains on the SA106 ‘Foreign’ pages, claiming Foreign Tax Credit Relief for the Spanish tax paid [10][11].

FAQ

Q: Why is IRNR 24% for a UK owner when an Irish owner pays 19%?

A: Since Brexit, UK nationals are non-EU/EEA for Spanish tax. The general IRNR rate for non-EU/EEA residents is 24%, versus 19% for EU/EEA residents [2] — applying to both imputed income and rental income.

Q: Can mortgage interest and maintenance be deducted from Spanish rental income?

A: Generally not for UK residents post-Brexit; they are taxed at 24% on gross rent [2]. Only EU/EEA residents may deduct eligible expenses and pay on the net profit — the most significant change for UK landlords.

Q: What are the purchase taxes on a €300,000 new-build on the Costa del Sol?

A: 10% IVA plus 1.2% AJD [1] — on €300,000, €30,000 IVA + €3,600 AJD = €33,600, before notary, registry and legal fees (see our closing-costs guide). Illustrative only; reduced rates may apply to some buyers.

Reminder. The above is general information current at 28 July 2026, not personalised advice. Rates, thresholds and deadlines change, and your position depends on your residency, the property and your circumstances. Always confirm the figures that apply to you with a qualified, independent tax adviser and a colegiado lawyer before acting.

Sources

[1] Junta de Andalucía — ITP and AJD general tax rates (Andalusia) — https://www.juntadeandalucia.es/organismos/economiahaciendayfondoseuropeos/areas/tributos-juego/tributos/paginas/tipositpajd.html
[2] Agencia Tributaria (AEAT) — Tax rates for non-resident income tax without a permanent establishment (IRNR 24% / 19%) — https://sede.agenciatributaria.gob.es/Sede/en_gb/no-residentes/irnr-sin-establecimiento-permanente/tipos-gravamen-irnr-sin-establecimiento-permanente.html
[3] Agencia Tributaria (AEAT) — Imputed income from urban property for personal use (1.1% / 2% of cadastral value) — https://sede.agenciatributaria.gob.es/Sede/en_gb/no-residentes/irnr-sin-establecimiento-permanente/cuestiones-especificas-sobre-tributacion-inmuebles/renta-imputada-inmueble-urbano-uso-propio.html
[4] Agencia Tributaria (AEAT) — Withholding by the purchaser of a property from a non-resident (3%, Modelo 211) — https://sede.agenciatributaria.gob.es/Sede/no-residentes/irnr-sin-establecimiento-permanente/retenciones-irnr-sin-establecimiento-permanente/retencion-adquirente-inmueble.html
[5] Agencia Tributaria (AEAT) — Capital gains derived from the transfer of property (non-resident, 19%) — https://sede.agenciatributaria.gob.es/Sede/en_gb/no-residentes/irnr-sin-establecimiento-permanente/cuestiones-especificas-sobre-tributacion-inmuebles/ganancia-patrimonial-derivada-transmision.html
[6] GOV.UK / HMRC — Synthesised text of the 2013 UK–Spain Double Taxation Convention (in force) — https://www.gov.uk/government/publications/spain-tax-treaties/synthesised-text-of-the-multilateral-instrument-and-the-2013-uk-spain-double-taxation-convention-in-force
[7] Agencia Tributaria (AEAT) — Modelo 210, non-resident income tax without permanent establishment (filing procedure) — https://sede.agenciatributaria.gob.es/Sede/procedimientoini/GF00.shtml
[8] Agencia Tributaria (AEAT) — Habitual residence in Spanish territory (183-day rule / centre of interests) — https://sede.agenciatributaria.gob.es/Sede/en_gb/ayuda/manuales-videos-folletos/manuales-practicos/irpf-2024/c02-irpf-cuestiones-generales/sujecion-irpf-aspectos-personales/residencia-habitual-territorio-espanol.html
[9] GOV.UK / HMRC — RDR3: Statutory Residence Test (SRT) guidance note — https://www.gov.uk/government/publications/rdr3-statutory-residence-test-srt/guidance-note-for-statutory-residence-test-srt-rdr3
[10] GOV.UK / HMRC — Tax on foreign income: paying tax and Foreign Tax Credit Relief — https://www.gov.uk/tax-foreign-income/paying-tax
[11] GOV.UK / HMRC — Self Assessment: Foreign (SA106) — https://www.gov.uk/government/publications/self-assessment-foreign-sa106
[12] Junta de Andalucía — Filing and payment of ITP and AJD (Modelo 600, ATRIAN) — https://www.juntadeandalucia.es/organismos/atrian/areas/declaracion-pagos/presentacion-impuestos/itpajd.html