Life in Spain After Brexit: Guide for UK Buyers | Hansson & Hertzell

Life in Spain After Brexit: Your Ultimate Guide for UK Buyers

The post-Brexit era has introduced significant changes for British citizens looking to buy property and live in Spain. From new visa requirements and residency rules to tax implications and healthcare arrangements, the landscape has shifted considerably since the UK left the European Union. However, Spain remains one of the most attractive destinations for UK nationals, and the Costa Blanca continues to welcome thousands of British buyers every year.

At Hansson & Hertzell, we have extensive experience helping UK buyers navigate these post-Brexit changes. This comprehensive guide addresses your key questions about taxes, residency, healthcare, and property ownership in Spain after Brexit.

Residency and Visa Requirements After Brexit

Since Brexit, UK citizens are treated as third-country nationals when it comes to Spanish residency. British nationals can still visit Spain for up to 90 days within any 180-day period without a visa, but staying longer requires a formal residency permit. The most common routes for UK buyers on the Costa Blanca include the non-lucrative visa for retirees and the Golden Visa for those investing €500,000 or more in property.

UK citizens who were legally resident in Spain before 31 December 2020 are protected under the Withdrawal Agreement and retain their residency rights through the TIE (Tarjeta de Identidad de Extranjero) card. If you moved to Spain after this date, you will need to apply through the standard third-country national routes.

Tax Implications for UK Property Owners

Understanding Spanish taxation is essential for UK citizens buying or owning property on the Costa Blanca. Non-resident tax applies if you own property in Spain but do not live there — you must file an annual non-resident income tax return (Modelo 210). Rates for non-EU residents (which now includes UK nationals) are 24%, compared to 19% for EU residents.

Capital gains tax on property sales in Spain ranges from 19% to 28% depending on the amount of gain. The IBI (Impuesto sobre Bienes Inmuebles) is an annual property tax similar to council tax, calculated based on the cadastral value of your property. Working with a qualified tax advisor familiar with both UK and Spanish tax systems is strongly recommended.

Healthcare and the EHIC/GHIC

After Brexit, the European Health Insurance Card (EHIC) was replaced by the Global Health Insurance Card (GHIC) for UK residents visiting Spain. However, the GHIC only covers temporary stays, not long-term residency. UK nationals becoming Spanish residents need to arrange private health insurance or, once registered as a resident and contributing to the Spanish social security system, can access the public healthcare system.

The Costa Blanca has excellent healthcare facilities, with major hospitals in Alicante, Torrevieja, and Benidorm. Many medical professionals speak English, making the transition easier for British residents.

Driving and Vehicle Registration

UK driving licences are now valid in Spain for up to six months from the date you become a Spanish resident. After this period, you must exchange your UK licence for a Spanish one. The process involves a medical examination and administrative fees but does not require retaking a driving test for most licence categories. Vehicle importation rules have also changed, with additional customs requirements for bringing a UK-registered car to Spain.

Banking and Financial Considerations

Opening a Spanish bank account remains straightforward for UK nationals, though some banks may require additional documentation post-Brexit. Having a local account is essential for paying property-related taxes, utility bills, and community fees. Currency exchange between GBP and EUR is a significant consideration — specialist currency brokers often offer much better rates than high-street banks for regular transfers or large property purchases.

Frequently Asked Questions

Can UK citizens still buy property in Spain after Brexit?

Yes, UK citizens can absolutely still buy property in Spain. Brexit has not changed property ownership rights. The main differences relate to residency requirements if you wish to live in Spain long-term, and tax rates which are now slightly higher for non-EU residents. Hansson & Hertzell guides UK buyers through the entire process on the Costa Blanca.

Do I need a visa to live in Spain after Brexit?

Yes, UK citizens now need a visa or residency permit to stay in Spain for more than 90 days. The most popular options include the non-lucrative visa for retirees and the Golden Visa for property investors. Contact Hansson & Hertzell for guidance on combining your property purchase with the right visa route.

How has Brexit affected property taxes in Spain for UK citizens?

The main change is that UK non-residents now pay 24% income tax on rental income and imputed income, compared to 19% for EU/EEA residents. Capital gains tax rates remain the same regardless of nationality. A qualified tax advisor can help you understand and optimise your tax position.

Expert Support for UK Buyers on the Costa Blanca

Despite the changes brought by Brexit, Spain and the Costa Blanca remain fantastic destinations for UK property buyers and residents. At Hansson & Hertzell, we work with experienced lawyers, tax advisors, and immigration specialists to ensure your move goes smoothly.

Contact us today: +34 865 753 261 | info@hanssonhertzell.com | hanssonhertzell.se

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