Brexit and your home in Spain: what really changed for British owners

If you are British and you own — or want to own — a home on the Costa Blanca, you have probably heard all sorts of things about Brexit: that you can no longer buy, that you will be thrown out, that you will pay twice as much. Take a breath. Most of those fears are exaggerated, and the important thing is to separate the noise from what genuinely changed.

Here it is plainly, without scaremongering but without sugar-coating either: what stays the same (you can buy and keep your home entirely as normal), what really changed (how you are taxed as a non-resident and how many days you can spend here), and what disappeared (gaining residence by buying a property). No jargon, point by point.

First and most important: Brexit does NOT stop you buying

The right to buy a home in Spain does not depend on your nationality. A British buyer purchases exactly like a German, a Norwegian or an American: with a NIE (foreigner's identification number), a bank account and a deed before a notary. Brexit introduced no restriction on a UK citizen acquiring or keeping property here. If you already own your home, it is yours and remains yours; and if you want to buy, you can do so without any problem. What changed is not the right to own the property, but two very specific things: how you are taxed and how many days you can stay.

What really changed: how you are taxed as a non-resident

Since the transition period ended (on 31 December 2020), for tax purposes you are a third-country national: you are outside the European Union and the European Economic Area. And the Spanish Non-Resident Income Tax Act treats those who live inside the EU/EEA differently from those who live outside it.

In practice this means two differences you feel in your pocket. First, the rate: an EU/EEA resident is taxed at 19 %; you, as a British owner, at 24 % (art. 25 of the TRLIRNR). Second, and often more costly, expenses: an EU/EEA resident can deduct expenses (IBI council tax, community fees, interest, utilities, depreciation…) and pay only on the net profit; you, as a third-country national, are taxed on the gross income, with no deduction of those expenses (art. 24 of the TRLIRNR).

The combined effect matters. Imagine you let your apartment and receive 12,000 € a year. A European resident would deduct their expenses and pay 19 % on what remains; you pay 24 % on the full 12,000 €, with nothing deducted. Year after year, the difference is far from trivial. That is why it pays to plan it properly rather than improvise with your tax return.

That said, a new front has opened here that is worth knowing about. The Audiencia Nacional (National Court), in a ruling of 28 July 2025, allowed a non-EU non-resident to deduct those expenses, on the grounds that denying it clashes with the free movement of capital under art. 63 of the Treaty on the Functioning of the EU — a freedom that, unlike others, also protects residents of third countries. But let's be clear: that ruling is not final, and the Spanish Tax Agency maintains its position of taxing at 24 % with no deductions. It is not, therefore, a settled right you can simply apply on your return, but a route of challenge worth weighing in your specific case before taking it on.

One important caveat: there is a double-taxation treaty between Spain and the United Kingdom, so the tax you pay here is generally taken into account when you file in the UK. Exactly how it applies in your case is best reviewed with advice on both sides, because it depends on your particular circumstances.

How long you can stay: the 90/180 rule

The second change is on immigration. As a British national you no longer have freedom of movement: you enter Spain as a third-country visitor and may stay in the Schengen area for a maximum of 90 days within any 180-day period. And here is the most common misunderstanding: owning a home in Spain does NOT entitle you to stay longer. Property and residence are different things; owning an apartment in Calpe does not extend that limit by a single day.

If you want to spend long stretches here or settle, you need a residence permit, like any non-EU national: a non-lucrative visa, a digital-nomad visa or another that fits your situation. Bear in mind, too, that the EU is rolling out its entry/exit control systems (known as EES and ETIAS); their deployment is under way and it is wise to confirm their status and requirements at the time of your trip, because they affect how that 90/180 count is monitored.

The 'golden visa' for buying a home: it no longer exists

For years the idea was sold that buying a property of a certain value (500,000 € or more) granted residence by investment, the so-called golden visa. Well: that route has been repealed. The twenty-first final provision of Organic Law 1/2025, of 2 January (on measures for the efficiency of the Public Justice Service), abolished residence by real-estate investment, with effect from 3 April 2025. As things stand, buying a home — however expensive — opens no door to residence. Applications filed before that date are dealt with under the previous rules, but for new purchases the route is closed.

Myths worth dismantling

• 'Brexit stops me buying in Spain.' False. There is no restriction by nationality: you buy like any other foreigner, with your NIE.
• 'Buying a home gives me residence.' False. It never did so automatically, and the only route linked to buying (the golden visa) has been repealed since April 2025.
• 'Since I have a home here, I can stay as long as I like.' False. Property does not alter the rule of 90 days within each 180; for longer, you need a residence permit.
• 'I pay the same as before Brexit.' Not quite. You moved from 19 % to 24 % and lost the ability to deduct expenses on your rental income.

If you are British and you own — or are thinking of owning — a property on the Costa Blanca, get in touch. I review your tax position as a non-resident, work out what you actually owe, file your returns and help you organise your stays and, if you need it, the right residence route. Brexit changed some of the rules, but with things done properly, your home in Spain is as enjoyable as ever.