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British buyers remain one of the largest groups in the Balearic property market. Brexit did not stop UK citizens from buying homes in Spain, but it did change the rules on how long you can stay, how you are taxed and how you can become resident. If you plan to buy property in Spain after Brexit, these are the points to understand before you sign.
Can UK citizens still buy property in Spain?
Yes. There are no restrictions on UK nationals buying residential property in Spain. The legal buying process (due diligence, arras contract, notary deed, registration) is the same as for any other buyer.
The 90/180-day rule
Since 1 January 2021, UK citizens are third-country nationals in the Schengen area. Without a visa or residence permit, you can stay a maximum of 90 days in any 180-day period across the whole Schengen area. Owning a property in Spain does not give you the right to stay longer.
If you want to spend more time in your Mallorca home, you will need a visa or residence permit.
NIE and bank account
You need an NIE (foreigner identification number) to buy. Your lawyer can obtain it for you, in Spain or through a power of attorney. Our guide on the NIE in Mallorca explains the process.
Taxes for UK owners
Buying taxes
The same taxes apply as for any buyer: transfer tax (ITP) on resale properties, which in the Balearics follows a progressive scale starting at 8%, or VAT plus stamp duty on new builds.
Annual non-resident tax
As a non-resident owner, you must file an annual non-resident income tax return for the property, even if you do not rent it out. Since Brexit, UK residents are taxed at the non-EU rate on rental income and cannot deduct expenses in the same way as EU residents.
Selling
When a non-resident sells, the buyer must withhold 3% of the price as a payment on account of capital gains tax.
Residency options for British buyers
If you want to live in Spain rather than visit, the main routes are:
- Non-lucrative visa: for people with sufficient passive income or savings who will not work in Spain.
- Digital nomad visa: for people working remotely for non-Spanish employers or clients.
- Work or entrepreneur visas: for those who will work or start a business in Spain.
Note that the Spanish golden visa for property investors ended in April 2025, so buying a property no longer gives residency by itself. Our page on residency in Mallorca summarises the available options.
Practical tips for UK buyers
- Currency: consider exchange rate risk between signing the deposit and completion.
- Inheritance: make a Spanish will for your Spanish property and consider how UK and Spanish rules interact.
- Driving licence and healthcare: relevant if you plan to become resident.
- Language: insist on a bilingual contract and a lawyer who explains every document in English.
A checklist for UK buyers before signing
Before you pay a deposit, make sure you have your NIE or an application in progress, a Spanish bank account, a clear budget including taxes of roughly 10–14%, and a plan for how many days a year you will actually spend in Spain. If you intend to live on the island, start the visa process early, because consulates in the UK can have long waiting times.
Frequently asked questions
Does owning a home in Spain give me residency?
No. Property ownership alone does not grant residency since the golden visa ended.
Can I rent out my Spanish property from the UK?
Yes, subject to rental rules and licences, and you must declare the income in Spain.
Do I need a Spanish will?
It is strongly recommended to simplify the inheritance process for your heirs.
Conclusion
Brexit made the paperwork more complex, but buying a home in Spain remains straightforward with the right advice. Castell.law assists British buyers with the purchase, taxes and residency in Mallorca, Ibiza, Menorca and Formentera.
