Key Takeaways
- UK citizens can still buy freely in Spain — Brexit did not change property ownership rights
- You’ll need an NIE (Número de Identificación de Extranjero) to complete a purchase
- Budget 10–13% on top of the purchase price for taxes and fees
- The buying process takes 6–12 weeks from offer to completion
- Independent legal representation (a Spanish solicitor) is strongly recommended
Spain remains the most popular overseas property destination for UK buyers. Despite Brexit, the fundamentals haven’t changed: you can still buy, own, rent out, and sell property in Spain without restriction.
What has changed is your residency status. As a non-EU national, UK citizens are now treated similarly to American or Australian buyers — with some implications for longer stays. But for property purchase itself, nothing has changed.
Step 1: Get Your NIE
The NIE (Número de Identificación de Extranjero) is your Spanish tax identification number. You cannot complete a property purchase without one. It’s also needed to open a Spanish bank account, pay taxes, and set up utilities.
How to get one:
- In Spain: Visit your nearest Policía Nacional station or Oficina de Extranjeros with your passport, a completed EX-15 form, and proof of reason (a property purchase reservation letter works).
- In the UK: Apply through your nearest Spanish consulate. Slower, but doable before you travel.
Processing time: 2–8 weeks. Apply early — it’s the most common cause of delays in the buying process.
Step 2: Open a Spanish Bank Account
You’ll need a Spanish bank account to:
- Receive mortgage funds (if applicable)
- Pay the completion balance via bank transfer
- Set up standing orders for utility bills and community fees
As a non-resident, the major Spanish banks (Santander, BBVA, CaixaBank, Sabadell) will open accounts for you with a passport and NIE. Some require proof of income.
Step 3: Appoint an Independent Solicitor
This is non-negotiable advice: hire your own independent Spanish solicitor. Do not use the developer’s or agent’s recommended lawyer — their loyalty is to their client, not you.
Your solicitor will:
- Conduct title searches on the property
- Check for outstanding debts or charges attached to the property
- Review the private purchase contract (contrato privado de compraventa)
- Advise on tax implications
- Attend the notary completion on your behalf
Typical cost: €2,000–€4,000 for a standard purchase.
Step 4: The Buying Process
Reservation Agreement
Once you agree a price, you pay a reservation fee (typically €3,000–€10,000) to take the property off the market. This is usually non-refundable if you withdraw.
Private Purchase Contract
Within 2–4 weeks, you’ll sign the private purchase contract and pay a 10% deposit. At this stage, if the seller pulls out, they must return double your deposit.
Completion (Escritura)
At the notary, the property is formally transferred. You pay the balance, taxes are settled, and the keys are handed over. Your solicitor registers the property in your name at the Land Registry.
Taxes and Fees Breakdown
| Cost | Resale Property | New Build |
|---|---|---|
| Transfer tax (ITP) | 7% (Andalucía) | — |
| VAT (IVA) | — | 10% |
| Stamp duty (AJD) | — | 1.2% (Andalucía) |
| Notary fees | €1,000–€2,500 | €1,000–€2,500 |
| Land registry | €400–€1,000 | €400–€1,000 |
| Solicitor | €2,000–€4,000 | €2,000–€4,000 |
| Total extra | ~10–12% | ~12–13% |
Mortgages for UK Buyers
UK citizens can get Spanish mortgages, though conditions differ from UK lending:
- Maximum LTV: 60–70% for non-residents (vs. up to 95% in the UK)
- Interest rates (2026): 3.5–4.5% variable; fixed-rate slightly higher
- Affordability test: Total mortgage payments shouldn’t exceed 30–35% of net income
- Documentation required: Last 3 payslips or 2 years of self-employed accounts, bank statements, passport, NIE
Currency risk: If taking a euro mortgage, monthly payments in pounds fluctuate with exchange rates. Many UK buyers take a UK equity release instead to avoid this.
Post-Brexit: The 90-Day Rule
This is the biggest practical change for UK buyers. As a non-EU national, you can now spend a maximum of 90 days in any 180-day period in the Schengen Area without a visa.
For most second-home buyers (holidays of 2–4 weeks at a time), this is not a problem. For those who want to spend extended periods in Spain (e.g., 3–6 months per year), you’ll need to apply for a:
- Non-lucrative visa: Requires proving passive income of ~€28,000/year. Entitles you to live in Spain up to 1 year, renewable.
- Golden Visa: Requires investing €500,000+ in Spanish property. Grants residency with work rights.
- Digital Nomad Visa: For remote workers — requires proof of income and contract from outside Spain.
Annual Costs of Owning in Spain
Beyond the purchase, budget for:
- IBI (council tax): €200–€800/year for an apartment, €600–€2,000 for a villa
- Community fees: €100–€400/month (covers communal areas, pool, security)
- Non-resident income tax: If you don’t rent the property, you still pay deemed rental income tax (~€100–€400/year on a typical apartment). If you do rent, 19% on net rental income (UK residents).
- Utilities (when in use): Electricity, water, internet — budget €150–€250/month
- Annual insurance: €200–€600/year for buildings and contents
Working with a Trusted Agent
One of the most valuable things a good agent does is act as a translator — not just linguistically, but culturally and procedurally. Spanish property transactions have quirks that catch out UK buyers who try to navigate them alone.
Our partner agency Casa Espanha has English-speaking staff, extensive experience with UK buyers, and access to thousands of properties across the Costa del Sol and Costa Blanca.
Send us a free enquiry and tell us what you’re looking for.
FAQs
Do I pay capital gains tax in Spain when I sell? Yes. Non-residents pay 19% CGT on the profit from a property sale. A 3% retention is withheld at completion as an advance payment against this.
Can I rent out my Spanish property? Yes, but tourist rentals require a licence from the regional government. Rules vary by area — some communities have restricted new licences. Your solicitor should check this before purchase if rental income is part of your plan.
Is there inheritance tax on Spanish property? Yes. Spanish inheritance tax (ISD) applies to assets held in Spain. Andalucía has generous reductions (up to 99% for close relatives), but planning is still advisable. Seek specialist advice.
What happens to my property if the developer goes bust? For off-plan purchases, Spanish law requires developers to provide bank guarantees for stage payments. Your solicitor will ensure these are in place. Do not pay stage payments without a valid guarantee.