UK buyers' guide to buying property on the Costa del Sol — 2026

This guide is written specifically for UK nationals buying property on the Costa del Sol in 2026. Since the UK left the European Union on 31 January 2020, the rules governing how British citizens buy, own, and spend time in Spain have changed in important ways. Property rights remain intact — UK nationals can buy freely — but the tax treatment, residency options, and time limits on visits are materially different from the pre-Brexit position. This guide sets out what you need to know before you reserve, sign, or transfer.

Can UK nationals still buy property in Spain after Brexit?

Yes, without restriction. Spain does not limit property purchases by nationality. A UK passport holder has the same right to purchase residential property in Spain as a citizen of any other country. Brexit did not change this. What changed is the visa and residency framework around the property, the tax rates applied to non-resident owners, and the rules on how long you can stay.

To complete a purchase, every non-Spanish buyer needs an NIE (Número de Identificación de Extranjero) — a Spanish tax identification number. Post-Brexit, UK nationals obtain an NIE at a Comisaría de Policía Nacional with an extranjería (foreigners) department while in Spain, or through the Spanish consulate in the UK. The process requires a completed Modelo EX-15 form, a valid passport, and a small administration fee. Allow four to eight weeks if applying through the consulate. The NIE must be in hand before signing the contrato privado de compraventa (private purchase contract) — not the reservation, but the contract proper.

The Schengen 90-day rule — what it means if you own property in Spain

This is the single most important post-Brexit change for UK property owners in Spain. Since January 2021, British passport holders are subject to the Schengen Area's 90/180-day rule: you may spend a maximum of 90 days in any rolling 180-day period across all Schengen countries combined. Owning property in Spain does not exempt you from this rule. A villa in Marbella does not entitle you to stay longer than 90 days per 180-day window.

The calculation is rolling, not calendar-based. On any given day, immigration authorities count back 180 days and check how many of those you spent in Schengen. If you spent 60 days in Spain and 30 days in France during that 180-day window, your allowance is exhausted. From 2024, the Entry/Exit System (EES) began biometric recording of non-EU entries and exits at Schengen borders. This removes the previous reliance on passport stamps, which were inconsistently applied. Overstaying — even by one day — is recorded automatically and can result in a ban on re-entry.

For buyers purchasing a holiday home who plan to visit for two or three weeks at a time, this rule is manageable and unlikely to cause problems. For buyers who plan to spend four to six months in Spain each year, it is a binding constraint that requires a visa solution before purchase, not after.

Visa options for longer stays

If your lifestyle requires more than 90 days in Spain per 180-day period, you need a residency visa before you can lawfully extend your stay. The main options in 2026 are:

Non-lucrative visa (Visado de Residencia no Lucrativa) — the most common route for retirees and those with passive income. Requirements in 2026: demonstrable monthly income of approximately €2,400 for a single applicant (around €28,800 per year), plus €600 per dependent; comprehensive private health insurance with full Spain coverage; no criminal record. The visa does not permit employment or self-employment in Spain. It is renewable annually and leads to permanent residency after five years of continuous legal residence.

Digital nomad visa — available to remote workers earning income from outside Spain. Requires proof of employment or client contracts with non-Spanish entities, income above 200% of the minimum wage, and health insurance. Suited to buyers who work remotely and want to spend extended periods in Spain while maintaining overseas employment.

Note on the Golden Visa: Spain's property-investment Golden Visa route, which previously granted residency to buyers of €500,000+ properties, closed to new applicants on 3 April 2025 under Organic Law 1/2025. It is no longer available. Buyers who reserved before that date and met the conditions may have retained rights — confirm with a qualified immigration lawyer if relevant.

Opening a Spanish bank account

A Spanish bank account is not a legal requirement for purchase but is strongly recommended in practice. Mortgage payments, IBI (council tax), community fees, and utility direct debits all work more smoothly through a Spanish account. Most major Spanish banks — BBVA, Santander, CaixaBank, Sabadell — open accounts for non-residents. Post-Brexit, the process involves passport, NIE, proof of UK address, UK tax identification number, and a signed declaration of non-resident status. Some banks require an appointment at a branch in Spain; others now offer digital onboarding for non-residents. Account opening typically takes two to four weeks.

Transferring money from the UK — the currency risk most buyers underestimate

The purchase price is denominated in euros. If you are earning and saving in sterling, you are exposed to the GBP/EUR exchange rate from the moment you agree to buy until the moment you complete. On a €500,000 purchase, a 5% move in the exchange rate represents £25,000 in additional cost. This is not hypothetical — the GBP/EUR rate has moved by more than 10% in a 12-month period multiple times since 2016.

High-street banks typically apply a 2–4% markup on the interbank exchange rate and charge additional transfer fees. On a €500,000 transfer, that markup can cost £10,000–£20,000 compared with a specialist foreign exchange broker. Providers such as Currencies Direct, TorFX, Wise, and Revolut offer rates significantly closer to the interbank rate with lower or no fees on large transfers. For buyers with a confirmed purchase price and timeline, a forward contract locks in today's exchange rate for delivery up to 12 months forward — useful if you are buying off-plan and final payment is 18–24 months away but you want to fix the sterling cost now.

Spanish banks may also charge a receipt fee on large incoming international transfers — typically €100–€500 for amounts above €20,000. Factor this into your cost calculation.

The buying process — step by step

The Spanish buying process has four distinct stages. Understanding each stage and its payment obligations before you begin prevents costly surprises.

1. Reservation (reserva) — a refundable deposit of typically €5,000–€15,000 holds the property while legal checks are conducted. This document is not the purchase contract. Your independent lawyer reviews it before you sign anything. The deposit is refundable if checks reveal a legal problem. Retain an independent Spanish property lawyer at this stage — not the developer's lawyer, not the estate agent's recommended lawyer. Your lawyer should be independent.

2. Private purchase contract (contrato privado de compraventa) — the binding contract signed by buyer and seller. For off-plan purchases, this sets out the payment schedule, completion date, and the penalty provisions for both parties. On off-plan purchases, all deposits paid before completion must be covered by an individual aval bancario (bank guarantee) — Spanish law requires this under Ley 20/2015. Your lawyer confirms the guarantee is in place and in your name before you sign and transfer.

3. Completion (escritura pública de compraventa) — signed before a Spanish notario (notary). The notary is a state-appointed official who verifies the legality of the transaction, confirms both parties' identities, and oversees transfer of title. The notary represents neither buyer nor seller — your lawyer represents you.

4. Registration — your lawyer registers the title at the (Land Registry) after completion. Until registration is confirmed, you hold a nota simple as evidence of title. Registration typically takes four to eight weeks.

Purchase taxes and costs

For new-build properties (first sale), the applicable tax is IVA (VAT) at 10% of the declared purchase price, due at each payment milestone — not only at completion. IVA does not apply to resale purchases.

For resale properties (second or subsequent sale), Impuesto sobre Transmisiones Patrimoniales (ITP) applies instead of IVA. In Andalusia, ITP was fixed at a flat 7% from 2021 — one of Spain's most competitive rates. Reduced rates of 3.5% apply for buyers under 35, buyers with disabilities, and large families purchasing a primary residence valued under €150,000.

Impuesto sobre Actos Jurídicos Documentados (AJD) — stamp duty — is charged at 1.2% in Andalusia and applies to the mortgage deed if financing, not to the purchase deed on a new-build.

Additional purchase costs: independent legal fees 0.5–1.0% plus IVA; notary and land registry fees approximately 0.5–1.0% on a sliding scale; mortgage arrangement fee if financing, typically 1.0–2.0% of the loan. A practical rule: budget 12–14% of the purchase price as ancillary cost on a financed new-build purchase; 11–12% for a cash purchase of a new-build; 10–11% on a financed resale purchase at 7% ITP.

Spanish non-resident income tax (IRNR)

Owning property in Spain as a non-resident triggers an annual Spanish tax liability regardless of whether you rent the property or use it yourself. This surprises many UK buyers who assume tax only arises if they earn rental income.

Imputed income (renta imputada) — if you own a property in Spain and do not rent it out, the Spanish tax authority treats you as having received a deemed rental income. The imputed income is calculated as 1.1% of the property's valor catastral (cadastral value, a government-assessed value typically below market value) if the value has been reviewed in the last 10 years, or 2% if not. UK non-residents pay 24% tax on this imputed income — post-Brexit, UK nationals no longer benefit from the 19% EU rate. The annual liability on a typical Marbella apartment is modest — often €200–€600 per year — but the declaration (Modelo 210) must be filed annually by 31 December of the year following the tax year.

Rental income — if you rent your Spanish property (holiday or long-term), rental income is taxed in Spain at 24% of gross receipts. Unlike EU residents, UK non-residents post-Brexit cannot deduct expenses such as mortgage interest, maintenance, insurance, or management fees against rental income. The full gross rental receipt is taxed at 24%. If you receive €20,000 gross rental income, the Spanish tax is €4,800. This represents a material cost that should be factored into rental yield calculations.

Capital gains when you sell

When a non-resident sells Spanish property, two taxes are triggered simultaneously: one in Spain, one in the UK.

Spanish CGT (plusvalía del Estado) — the gain (sale price minus acquisition cost, adjusted for buying costs, capital improvements, and inflation) is taxed at 19% for non-residents. This 19% flat rate applies to UK nationals under the Spain-UK Double Taxation Treaty regardless of the amount of gain. The buyer is required to withhold 3% of the sale price and pay it directly to the Spanish tax authority () on Form 211 within one month of completion — this is an advance on the seller's eventual CGT liability. The seller then files Form 210 within four months, calculates the actual CGT, and receives a refund of any excess withheld (or pays any shortfall).

UK CGT — UK tax residents must declare the gain on their Self Assessment return (SA106 form) and pay UK CGT at the applicable rate (currently 18% or 24% depending on total income). The Spain-UK Double Taxation Treaty prevents double taxation: the Spanish CGT paid can be offset as a credit against the UK CGT liability on the same gain. In most cases, where the Spanish rate (19%) is lower than the UK rate (18–24%), UK tax is due on the differential.

UK tax reporting obligations

UK tax residents have ongoing reporting obligations to HMRC from the point of purchase. These are separate from Spanish obligations and run in parallel.

Rental income from a Spanish property must be declared to HMRC annually on the SA106 (Foreign) supplementary pages of the Self Assessment return, regardless of whether tax has been paid in Spain. The UK/Spain DTA determines which country has primary taxing rights — for rental income, this is Spain — and HMRC allows a credit for Spanish tax already paid, so you do not pay twice on the same income.

Capital gains from the sale of a Spanish property must be declared to HMRC in the tax year the sale completes, again on SA106. The Spanish tax paid is credited against the UK liability.

The Requirement to Correct legislation carries penalties of up to 200% of any undeclared tax liability for deliberate non-disclosure. HMRC and the exchange information under the Common Reporting Standard (CRS). Non-declaration is not a viable strategy.

Inheritance — why you need a Spanish will

The Spain-UK Double Taxation Treaty covers income and capital gains. It does not cover inheritance tax. This gap creates potential double exposure: Spanish Inheritance Tax (Impuesto sobre Sucesiones y Donaciones) on the Spanish property, plus UK Inheritance Tax on the same asset if it forms part of a UK-domiciled estate.

Andalusia's inheritance framework is, however, among the most generous in Europe for direct family. Spouses, children, and parents each benefit from a €1,000,000 tax-free allowance per beneficiary, and a 99% reduction applies to the remaining tax quota above that threshold. In practice, the Spanish inheritance tax liability for a direct-line beneficiary inheriting an Andalusian property is very low. This applies to non-residents — following definitive European Court of Justice rulings, non-residents are entitled to the same regional allowances as residents.

For non-direct-line beneficiaries (siblings, nephews, unmarried partners not registered as pareja de hecho), the national rates (7.65–34%) apply with fewer allowances, and the liability can be substantial.

A Spanish will (testamento) is strongly recommended for every UK buyer. A Spanish will, drafted by a Spanish notary and registered in the Spanish Central Register of Wills (Registro de Actos de Última Voluntad), ensures that the Spanish property passes according to your wishes under Spanish law without the need for full UK probate proceedings in Spain. Without a Spanish will, your UK executors must navigate an ancillary probate process that adds six to twelve months and significant cost to the estate administration. A Spanish will costs approximately €200–€400 and can be drafted at the same time as you complete the property purchase.

Running costs

Owning a property on the Costa del Sol carries annual fixed costs that should be modelled before purchase.

IBI (Impuesto sobre Bienes Inmuebles) — the Spanish equivalent of council tax, charged by the local municipality based on the property's cadastral value. For a typical Marbella apartment with a cadastral value of €150,000, IBI is typically €600–€1,200 per year. Villas with higher cadastral values pay proportionally more.

Community fees (cuota de comunidad) — paid to the residents' community (comunidad de propietarios) and covering maintenance of shared areas, pool, gardens, lift, and building insurance. These vary widely: from €100 per month on a simple urbanisation to €1,000+ per month on a high-amenity luxury development with concierge, gym, and extensive grounds.

Annual IRNR declaration — as described above, the annual Form 210 for imputed income must be filed and paid even if you do not rent the property. Many UK owners appoint a Spanish gestor (tax administrator) to handle this for €100–€200 per year.

Buildings insurance (seguro de hogar) — the community policy covers the structure; you require a separate contents policy. Some banks require specific coverage levels as a condition of a mortgage.

Engaging the right professional team

The most common and most costly mistake UK buyers make on the Costa del Sol is using the developer's recommended lawyer, or the estate agent's recommended lawyer, rather than independently retained counsel. Your lawyer should be:

• Independent — not introduced or paid by the developer or agent
• Qualified to practise Spanish property law
• Fluent in English and familiar with UK buyers' specific cross-border tax position
• Registered with the Spanish Bar (Colegio de Abogados)

Roccabox introduces independent, regulated Spanish property lawyers to clients as a standard part of our buyer advisory process, at no cost. We also coordinate with non-resident mortgage brokers where financing is required. We do not receive referral fees from legal or financial professionals we introduce.