British Buyers of Property in Spain After Brexit: What Has Changed and What Has Not
British buyers remain the largest single nationality of foreign property buyers in Spain, with around 800,000 British families currently owning Spanish property. Brexit has changed several aspects of the buying process and the post-purchase situation for British nationals, but the fundamentals of the transaction remain the same. The main changes affect immigration (the 90-day Schengen limit for non-residents), tax (different rates for IRNR depending on EU/non-EU residence in some interpretations), and certain procedural aspects (use of apostilled documents, increased scrutiny of UK identification). This article addresses the post-Brexit landscape from the British buyer’s perspective: what has changed in the legal and tax treatment, what has not, the practical implications for the purchase process, and the strategies to mitigate the new constraints. A dedicated real estate lawyer in Spain with experience of UK clients is essential.
What has not changed
The fundamentals of the property purchase process for British buyers have not changed with Brexit. The Spanish notarial system, the Land Registry, the ITP tax, and the procedural steps for buying a property are the same as before. British nationals can still buy property in Spain freely, without any restriction on foreign ownership. The Spanish legal system treats British buyers in the same way as buyers of any other nationality for the purposes of property law.
The right to inherit a Spanish property, to transmit it by gift, to sell it to a Spanish resident or to another foreign buyer, and to enjoy the property freely, all remain unchanged. The legal infrastructure that supports foreign property ownership in Spain has been built up over decades and is not disrupted by Brexit. For most practical purposes, a British buyer in 2026 has the same legal rights as a British buyer in 2018.
The 90-day Schengen limit
The most significant practical change for British property owners in Spain is the 90-day Schengen limit. Since 1 January 2021, British nationals are subject to the same Schengen rules as other third-country nationals: they can spend up to 90 days within any 180-day period in the Schengen area as a whole (not just in Spain). British owners who used to spend 6 months a year at their Spanish home can no longer do so without a visa or residence permit. The detailed implications are discussed in our British buyers section.
The mitigation strategies for British owners who want to spend more than 90 days in Spain include: applying for the non-lucrative visa (which requires sufficient income and grants residence); applying for the digital nomad visa (for those working remotely for non-Spanish employers); applying for the Beckham Law special tax regime (for those moving employment to Spain). Each option has its own requirements and tax implications, and the choice depends on the individual circumstances of the owner.
The IRNR tax rate question
The non-resident income tax (IRNR) applies to British owners on their Spanish-source income (typically the imputed income from non-rented property, or actual rental income from rented property). Before Brexit, EU residents paid IRNR at the rate of 19% and could deduct expenses; non-EU residents paid 24% with no deductions. After Brexit, the UK is a non-EU country and the literal application of the rule would put British owners at 24% with no deductions.
This question has been the subject of debate and of EU infringement proceedings against Spain. The current practical position is that Spain has continued to apply the 19% rate to British owners in many cases, citing the spirit of the Spain-UK double tax treaty and the principle of non-discrimination. However, the situation is not entirely settled and British owners should consult with their lawyer or tax adviser on the rate applicable to their specific situation. The difference between 19% and 24% is substantial over the years and is worth clarifying.
Apostilled documents
Pre-Brexit, certain UK-issued documents had streamlined recognition in Spain under EU rules. Post-Brexit, those streamlined routes are gone and UK documents must be apostilled under the 1961 Hague Convention to be recognised in Spain. The apostille is issued by the UK Foreign, Commonwealth and Development Office Legalisation Office. The procedure adds 1-3 weeks to the timeline for any document that requires apostille.
Documents typically requiring apostille for a property purchase include: power of attorney signed before a UK notary (for buyers who cannot travel to Spain for the signing); UK marriage certificate (for joint purchases by spouses); UK identity documents in some scenarios. The Spanish lawyer typically guides the buyer on which documents require apostille and how to arrange it efficiently. Same-day courier services to the FCDO are available for urgent cases.
Spanish wills for British buyers
Brexit has reinforced the importance of making a Spanish will for British buyers of Spanish property. A Spanish will allows the testator to choose English law to govern the succession under EU Regulation 650/2012, which Spain continues to apply even to nationals of non-EU countries. Without a Spanish will choosing English law, the default rule applies the law of the deceased’s habitual residence — which, for a British national who spends substantial time in Spain, could be Spanish law with its forced-heir rules. The mechanics of the choice are explained in our partner-site article on making a Spanish will after Brexit.
For British couples buying a Spanish property, the recommendation is to make a Spanish will at the time of the purchase or shortly afterwards. The cost is modest (typically €60-€120 for a notarial fee) and the protection is substantial. The Spanish will only deals with Spanish assets and does not interfere with any existing English will dealing with UK assets.
Inheritance tax after Brexit
There is no bilateral inheritance tax treaty between Spain and the UK, and Brexit has not changed this position (the previous absence of a treaty continues). For British buyers, the inheritance tax planning of Spanish property requires consideration of both Spanish inheritance tax (which applies to Spanish-situs assets regardless of the heir’s residence) and UK inheritance tax (which applies to the worldwide estate of a UK-domiciled deceased).
The Spanish inheritance tax burden has been substantially reduced in many regions, particularly Andalusia (99% reduction for direct family members since 2019). For most British families inheriting a Spanish property in Andalusia from a UK-resident parent, the Spanish inheritance tax is now a small amount. The main tax burden is on the UK side, which is not affected by the Spanish regional reductions.
Banking and money transfer
British buyers transferring funds from the UK to Spain for the purchase face the same money laundering checks as before Brexit, with somewhat enhanced documentation requirements post-Brexit. The Spanish receiving bank typically requires proof of the source of funds (sale of UK property, savings accumulated over time, gift from family, etc.) and documentation supporting the legitimate origin of the money. Preparation of this documentation in advance avoids delays at the moment of closing.
The exchange rate from pounds to euros is a material consideration for the purchase budget. British buyers should consider whether to convert the funds at the time of the purchase (locking the rate but exposed to short-term fluctuations) or to spread the conversion over time (averaging the rate but with timing risk). Specialist FX providers often offer better rates than the high-street banks and are worth comparing.
Practical advice for British buyers in 2026
For British buyers planning a purchase in 2026, the practical advice is: engage a Spanish real estate lawyer with experience of UK clients; apply for the NIE early in the process (consider the lawyer-delegated route); consider the immigration implications and apply for any necessary visa or residence permit if you plan to spend more than 90 days a year in Spain; arrange the funds and the source-of-funds documentation in advance; make a Spanish will choosing English law at the time of or shortly after the purchase; review the inheritance tax planning for the Spanish property in coordination with your UK tax adviser.
The post-Brexit landscape is more complex than the pre-Brexit one but does not prevent successful purchases of Spanish property by British buyers. The legal infrastructure is the same; the procedural friction is slightly higher; the immigration constraints are real and must be planned for. With professional guidance, the additional complexity is manageable.
Common errors by British buyers
The most common errors by British buyers post-Brexit include: assuming that the 90-day Schengen limit can be bypassed without consequences (the consequences include refusal of future entry and immigration sanctions); assuming that the EU IRNR rate (19%) automatically applies (it requires specific argumentation in some cases); failing to make a Spanish will (which exposes the estate to Spanish forced-heir rules); failing to apostille UK documents required for the purchase (which delays the closing).
Each of these errors is preventable with proper professional advice. The marginal cost of getting it right is modest in relation to the value of a typical property purchase. The cost of getting it wrong can be substantial, both financially and in terms of frustration. The investment in qualified professional advice is the best investment a British buyer can make in the purchase process.
Action steps for a British purchase in 2026
First: engage a Spanish real estate lawyer with experience of British clients. Second: apply for the NIE through the lawyer if possible. Third: define the immigration strategy if you plan to spend more than 90 days a year in Spain. Fourth: organise the source-of-funds documentation. Fifth: complete the purchase with full lawyer support at every step (reservation, due diligence, option, public deed). Sixth: make a Spanish will. Seventh: handle the post-purchase obligations and consider inheritance tax planning. For a full consultation on a British purchase in Spain, contact our team.
British buyers continue to be welcomed in the Spanish property market and continue to make the great majority of foreign property purchases in many areas of the Costa del Sol, the Balearics, and the Costa Blanca. The post-Brexit complications are manageable with professional advice and do not prevent successful long-term ownership.