Owning in Spain while living in the UK: tax on both sides

When you buy: the same taxes as everyone

Nationality and residence make no difference to the purchase taxes. In Andalucía a resale pays 7 % transfer tax (ITP); a new build pays 10 % VAT plus 1.2 % stamp duty (AJD). Our guide to Spanish property taxes has the full list, with the fees on top.

Every year, in Spain

• IBI, the town hall's property tax, is paid by every owner, resident or not.
• Non-resident income tax on a home you do not rent out.Spain taxes non-resident owners on a notional income from the property: 2 % of its cadastral value, or 1.1 % where the town's values have been revised. As a UK resident you pay it at the non-EU rate of 24 %; residents of EU and EEA countries pay 19 %. The amounts are usually modest, but the return (form 210) is compulsory every year.
• If you rent it out, the actual rental income is taxed instead: for UK residents, 24 % of the gross rent, because the tax office allows expenses to be deducted only by EU and EEA residents. A Spanish court ruled in 2025 that non-EU owners should be allowed to deduct them too, and the Supreme Court is now considering the case. Holiday letting also has to be registered as a tourist rental, and many communities of owners must approve it — check both before you buy, not after.

Every year, in the UK

HMRC taxes UK residents on their income and gains wherever they arise. Rent from a Spanish property goes on your Self Assessment return as foreign income. The UK–Spain double taxation convention gives Spain the first right to tax income from property in Spain, and the UK then gives credit for the Spanish tax paid on the same income, up to the UK tax on it — so, broadly, you pay the higher of the two taxes rather than both. The notional income Spain taxes on an unlet home is not income HMRC taxes, because nothing was actually received.

When you sell

Spain taxes a non-resident's gain at 19 %, and the buyer withholds 3 % of the price and pays it to the Spanish tax office on account; you reclaim any excess. Because you are a non-resident seller, your buyer also holds back the town hall's plusvalía tax from the price and pays it — and nothing is due if there was no real gain. As a UK resident, the same gain is also within UK capital gains tax, with credit for the Spanish tax under the treaty. Keep every invoice for improvements and the costs of buying: they reduce the gain in both countries.

Inheritance

Spanish inheritance tax applies to a home in Spain whoever inherits it. Andalucía reduces it by 99 % for close family — children, spouses, parents — and non-resident heirs can rely on the Andalusian rules. UK inheritance tax may also reach the Spanish home if you are a long-term UK resident; there is no inheritance tax treaty between the two countries, so relief for the Spanish tax is given by the UK on its own terms. Many British owners also make a Spanish will for the Spanish property, which makes the probate on this side far simpler.

The short version

Spain: purchase tax once, IBI and a small non-resident return every year, 19 % on the gain when you sell. UK: your worldwide income and gains as before, with credit for what you paid in Spain. Have a Spanish and a UK adviser who talk to each other — and ask us if you would like an introduction.

More for buyers coming from the UK

• Buying in Spain from the UK after Brexit
• The 90/180 rule: how long you can stay in your Spanish home
• Paying in pounds: exchange rates and moving the money
• Getting to the Costa del Sol from the UK