Tax Obligations for UK Citizens with Property in Spain – A Complete Guide for 2025

Introduction

If you are a UK citizen who owns property in Spain, it is essential to understand your Spanish tax obligations post-Brexit. As a non-EU resident, UK nationals face different tax rates and reporting requirements compared to EU residents.

In this guide, we break down the key taxes UK property owners in Spain must pay, how Brexit has impacted tax obligations, and how Taxadora can help you file your Spanish taxes hassle-free.

Key Tax Obligations for UK Citizens in Spain

As a UK citizen owning property in Spain, you must comply with the following tax requirements:

1. IBI (Impuesto sobre Bienes Inmuebles) – Annual Property Tax

• A local municipal tax paid annually.
• Based on the Valor Catastral (cadastral value) of your property.
• The tax rate varies by municipality but generally ranges from 0.4% to 1.3%.
• Paid to the local town hall (Ayuntamiento).

📌 How Taxadora Helps: We ensure your IBI tax is correctly calculated and paid on time, avoiding penalties.

2. Non-Resident Income Tax (Modelo 210) – Even if You Don’t Rent Your Property

• If you do not rent out your property, you still must pay a tax based on imputed income.
• Calculated as 2% of the cadastral value (or 1.1% if updated after 1994).
• Tax rate for UK citizens: 24% on the imputed income (higher than the 19% rate for EU residents).

📌 How Taxadora Helps: We handle your Modelo 210 tax filing, ensuring accurate calculations and compliance.

3. Rental Income Tax (If You Rent Out Your Property – Annual Filing from 2024 Onwards)

• From 2024 onwards, rental income tax must be filed annually instead of quarterly.
• UK citizens must pay 24% tax on rental income.
• Unlike EU residents, no deductions for expenses (e.g., maintenance, mortgage interest) are allowed.

📌 How Taxadora Helps: We simplify tax filing for rental properties, ensuring all declarations are correct and timely.

4. Capital Gains Tax (If You Sell Your Property in Spain)

• 19 % tax rate on capital gains for UK citizens
• 3% of the sale price is withheld at the time of sale as a prepayment to cover potential tax liabilities.

📌 How Taxadora Helps: We calculate your capital gains tax and Plusvalía Municipal tax, ensuring you claim any applicable reductions.

5. Wealth Tax (Almost Abolished in Many Spanish Regions)

• While Spain technically still has a Wealth Tax (Impuesto sobre el Patrimonio), it has been effectively abolished in many regions.
• Some autonomous communities, such as Madrid and Andalusia, no longer apply Wealth Tax to most residents.
• Other regions may still impose it on Spanish assets over €700,000 at rates ranging from 0.2% to 3.5%.

📌 How Taxadora Helps: We assess whether you need to pay Wealth Tax based on your property’s location and optimize your tax liability.

How Brexit Has Affected UK Citizens’ Tax Obligations in Spain

Since Brexit, UK citizens are now classified as non-EU residents, which has resulted in:

🚀 Higher Tax Rates:

• The non-resident income tax rate increased from 19% to 24%.
• No deductions for rental income, unlike EU property owners.

🚀 Visa & Residency Changes:

• UK citizens now require a visa or residency permit if staying in Spain for more than 90 days in a 180-day period.
• The popular Golden Visa Program, which allows property investors to obtain residency by investing €500,000 or more, is set to end in 2025.

📌 Need help navigating post-Brexit tax changes? Taxadora ensures you stay compliant with Spanish tax laws.

Contact Taxadora for Expert Tax Assistance

Common Questions from UK Property Owners in Spain

1. Do I have to pay tax in Spain if I don’t rent out my property?

• Yes. Spain applies a non-resident tax (Modelo 210) based on imputed rental income.
• This applies even if the property is not rented out.

2. What if I rent out my property?

• From 2024 onwards, rental income tax must be filed annually instead of quarterly.
• You must pay 24% tax on rental income, with no deductions allowed for UK citizens.

3. Do I have to pay tax in the UK as well?

• If you are UK tax resident, you must declare your Spanish rental income on your UK tax return.
• The UK-Spain Double Taxation Agreement prevents you from paying tax twice. The Spanish tax is often deductible in the UK.

4. Can I avoid Spanish taxes by owning the property through a UK company?

• No. The Spanish tax authorities consider corporate ownership structures, and you may face additional taxation.
• Always seek tax advice before structuring your property ownership.

📌 Need answers to your tax questions? Contact Taxadora for expert guidance!

Why Choose Taxadora for Your Spanish Tax Needs?

At Taxadora, we specialize in tax services for UK citizens who own property in Spain. We handle everything from Modelo 210 filings to capital gains tax calculations, ensuring your taxes are filed correctly and on time.

✅ How Taxadora Helps You:

• Annual Non-Resident Tax Filings (Modelo 210) – Hassle-free tax filing, ensuring compliance.
• Rental Income Tax Services – Annual filings with accurate calculations.
• IBI Property Tax Guidance – Ensuring your municipal tax is paid correctly.
• Capital Gains & Wealth Tax Planning – Avoid overpaying and optimize your tax liability.

🚀 Let Taxadora take care of your Spanish tax obligations so you don’t have to worry.

📌 Own property in Spain? Make tax filing easy with Taxadora! Start Here

Conclusion

As a UK citizen owning property in Spain, understanding your post-Brexit tax obligations is essential. From non-resident income tax to capital gains tax, staying compliant is key to avoiding fines and penalties.

💡 Taxadora makes Spanish tax compliance simple and stress-free!

📌 Need help with Spanish tax filings? Contact Taxadora today! Learn More