Complete Post-Brexit Guide: Buying Property in Spain from the UK

At MN Legal Firm, a law firm specialised in international clients, we have tailored our services to navigate the new post-Brexit reality and ensure that the process of buying real estate in Spain remains smooth, safe and legally compliant.

New Post-Brexit Requirements

Since 1 January 2021, British citizens are no longer treated as EU nationals, which brings significant changes:

- Additional documentation required:

• Must obtain the NIE (Número de Identificación de Extranjero) for any property transaction.
• Obtain a certificate of non-tax residency if applicable.
• Enhanced documentation to open Spanish bank accounts.
• Stricter proof of funds and anti money-laundering compliance.

- New timing and procedures:

• The NIE application process may take 2–4 weeks.
• Some banks require more extensive documentation when offering mortgages to UK nationals.
• Increased scrutiny on international transfers and compliance measures.

Specific Tax Implications

Brexit has introduced further fiscal considerations for UK buyers:

- Transfer Tax (ITP) / VAT:

• British buyers pay the same rates as other non-EU foreigners; nationality does not change the tax rate automatically. solicitorsinspain.com+1
• However, the classification as “non-EU resident” may affect other tax obligations.

- Tax planning:

• It is essential to analyse your tax residence in both the UK and Spain.
• Optimise use of the UK-Spain double taxation treaty.
• If you intend to rent out the property: tax rates for non-EU nationals may differ. albirabogados.com

Updated Step-by-Step Process

1. Initial specialist consultation

• At MN Legal Firm, we begin with a tailored consultation for post-Brexit UK buyers in which we review:
• The client's individual circumstances.
• Specific tax implications in the UK and in Spain.
• The up-to-date documentation required.
• Realistic timeline of the process.

2. Obtaining the NIE

We manage the NIE application:

• Process the appointment and/or paperwork.
• Prepare all required documentation.
• Track and follow up until issuance of the NIE.

3. Enhanced due diligence

We conduct a rigorous legal verification of the property:

• Check the land registry for encumbrances, debts or charges.
• Ensure urban planning compliance (permits/licences).
• Review any outstanding liabilities.

4. Specialist banking assistance

• We facilitate the opening of Spanish bank accounts configured for UK clients:
• We liaise with banks experienced with UK nationals.
• We prepare the specific documentation required by each bank.
• We assist the client through the account opening process.

5. Customised tax advisory

We provide bespoke tax advice linked to property investment in Spain and its impact for UK nationals:

• Analyse UK-side tax obligations (income tax, residency, double taxation).
• Optimise Spanish side: property-taxation, structure, rental income.
• Plan ahead to avoid surprises or unnecessary tax burdens.

6. Completion and post-sale support

We accompany the client through the final stages:

Thorough review of the public deed of purchase (Escritura).

Representation at the notary or via power of attorney if the client cannot attend in person.

Registration of the property, payment of taxes post-purchase and ongoing follow-up.

Why Work with MN Legal Firm

• Post-Brexit experience: over 200 operations closed since Brexit, up-to-date knowledge of regulatory changes, and established relationships with banks, notaries and advisors.
• Native English service: fluent communication in English, fully explained documentation, and personalised attention for UK clients.
• Specialist network: banks that regularly deal with UK nationals, notaries experienced in post-Brexit transactions, and advisors specialised in UK clients.

Recent Success Stories

• London family: purchased a villa in Los Alcázares for €450,000. Process completed in eight weeks, including NIE and mortgage financing.
• Retired couple from Manchester: acquired an apartment in Valencia for €280,000. Tax optimisation yielded savings of €15,000.
• Investor from Birmingham: purchased three investment properties in Murcia. Structuring optimised to maximise return on investment.

Conclusion

Brexit does not need to be a barrier to your real-estate investment in Spain. With the right advice and the expertise of MN Legal Firm, the process can remain as smooth as ever—it simply requires more careful planning and additional documentation. Our team, dedicated to UK-based clients, is ready to guide you through every step to ensure your investment is safe, legally compliant and tax-efficient.