What’s expected of British expats in Spain post Brexit?

Brexit changed the legal position of British nationals in Spain from 1 January 2021. Five years on, the practical questions are residence status, tax, healthcare and how to prepare a move.

This post covers Spanish law and the Valencian angle, and readers should coordinate UK filings with their UK adviser.

The legal status of British expats in Spain after Brexit

British nationals living in Spain fall into two groups with different legal positions. The difference affects residence rights, family reunification, healthcare and social security coordination.

Withdrawal Agreement beneficiaries

British nationals who were legally resident in Spain before 31 December 2020, and who registered with the Spanish authorities, are protected by the Withdrawal Agreement. Their right to live in Spain continues on terms close to those of EU citizens, as long as the conditions of the Agreement are met.

The UK government guidance on living in Spain says that the TIE is the only valid residency document listed in the Withdrawal Agreement. It strongly recommends that holders of the older green certificate exchange it for a TIE. Our guide to the green card, NIE and TIE explains the documents.

British arrivals after Brexit

British nationals arriving from 1 January 2021 are treated as third-country nationals. They cannot rely on free movement and must obtain a visa and a residence authorisation before settling.

The most common routes are:

• The Spanish non-lucrative visa for retirees and people with passive income.
• The digital nomad visa under Startup Law 28/2022 for remote workers, with a separate note on the digital nomad visa for W-2 employees.
• The Spain startup visa for innovative entrepreneurs.
• Work and self-employment visas for people with a Spanish employer or a business plan.
• Family reunification for spouses, partners and children of Spanish nationals or legally resident foreigners.

Spain no longer grants residence for property investment. The transitional provisions of Ley Orgánica 1/2025 let earlier applicants and existing holders keep their position, and our note on the end of the Golden Visa covers the background.

Residence rights and the path to long-term status

Spanish residence works as a ladder. A temporary authorisation leads to long-term residence after five years of continuous temporary residence under article 32 of Ley Orgánica 4/2000, and Spanish nationality by residence generally requires ten years of legal residence under article 22 of the Civil Code. The shorter periods in that article do not list the United Kingdom.

Long-term residence for British expats

After five years of continuous residence, British nationals can apply for long-term residence in Spain. Article 32 of Ley Orgánica 4/2000 describes it as the status that authorises you to live and work in Spain indefinitely on the same terms as Spanish nationals.

The 2026 extraordinary regularisation

The application window of Spain’s extraordinary regularisation of foreign nationals closed on 30 June 2026. Our post on the closed regularisation procedure explains what it was and what comes next.

Visits, the 90/180 rule, EES and ETIAS

British nationals without a residence authorisation can travel in the Schengen area for up to 90 days in any 180-day period. Longer stays or overstays lead to fines, entry bans and problems with later residence applications, as our guide on overstaying a visa in Spain explains.

The Entry/Exit System (EES) started progressively on 12 October 2025 and became fully operational on 10 April 2026. It registers non-EU nationals travelling for a short stay.

The European Commission’s news item of 28 April 2026 says ETIAS is scheduled to start in the last quarter of 2026 and that the exact start date will be communicated later in the year. Our guide to EES and ETIAS for UK nationals covers how they affect visitors and second-home owners.

Brexit timeline for British expats in Spain

Tax obligations for British expats in Spain

Tax residence is the most consequential issue for British nationals in Spain. Residents are taxed on their worldwide income, while non-residents are taxed only on Spanish-source income.

When does Spanish tax residence apply?

Under article 9 of the IRPF Act you are a Spanish tax resident if either of these applies:

• Physical presence: you stay more than 183 days in Spain in a calendar year. Sporadic absences count towards the 183 days unless you prove tax residence in another country.
• Centre of economic interests: the main base of your activities or economic interests is in Spain, directly or indirectly.

The law presumes residence in Spain, unless you prove otherwise, when your spouse (not legally separated) and your dependent minor children live habitually in Spain.

If you are also resident in the UK, the UK-Spain double taxation convention has tie-breaker rules. Our guide to UK-Spain double taxation explains the 183-day count and the residence certificate in more detail.

Spanish taxes that can apply to residents and owners

The compliance calendar is strict, and UK nationals need to line up Spanish deadlines with their UK filings. Our guide to Spanish tax deadlines gives the annual schedule.

The Beckham Law and tax planning options

Article 93 of the IRPF Act lets people who move to Spain opt to be taxed under the non-resident income tax rules while remaining IRPF taxpayers, for the year of the move and the five following years. The conditions include no Spanish residence in the previous five tax years and a move linked to an employment contract (including remote work under the international teleworking visa), a directorship, entrepreneurial activity or work as a highly qualified professional.

Under the regime, the general income earned in Spain is taxed at 24% up to €600,000 and 47% above that amount, and Spanish-source savings income follows the 19% to 30% scale. Our guide to the Beckham Law Spanish tax regime covers eligibility, and the note on how to reduce your tax burden in Spain covers other planning options.

UK pensions, QROPS and retirement planning in Spain

Retirement is a main reason British nationals move to Spain, and UK pension contributions in Spain are a separate subject from the tax on pension income covered here. How UK pension structures fit with the Spanish tax system needs careful sequencing.

What the UK-Spain convention says about pensions

Two articles of the UK-Spain double taxation convention matter most:

• Article 17: subject to article 18(2), pensions and similar remuneration paid to a resident of one State are taxable only in that State. For a Spanish resident with a private pension, that State is Spain.
• Article 18(2): pensions paid by a State for services rendered to it are taxable only in that State, unless the person is both resident and a national of the other State, in which case only the other State may tax them.

The UK State Pension

In binding ruling V2460-21, the Spanish tax authority’s tax directorate (DGT) treated a UK State Pension as a public pension under article 18(2), on the limited facts the taxpayer supplied. For a British national resident in Spain, the ruling concluded that the pension may be taxed only in the UK and is exempt in Spain, although it still counts for working out the rate on the rest of the taxpayer’s income.

A ruling answers one taxpayer’s facts. Whether it applies to your pension, and how to report it, depends on your nationality, residence and the other income you have, so contact us to confirm your case.

Lump sums, SIPPs and drawdown

Neither article 17 nor article 18 mentions lump sums. We have found no AEAT or DGT ruling on the Spanish tax treatment of the UK 25% tax-free lump sum or of SIPP drawdown, so we do not state a rule here.

Contact us before you take any UK pension benefit while resident in Spain, so that the timing and the Spanish tax treatment can be checked against your case.

Modelo 720 and Modelo 721: declaring UK assets

Spanish tax residents must report certain assets held abroad. UK bank accounts, investment accounts, ISAs and UK property are the usual items for British expats in Spain.

The three asset categories

Modelo 720 has three categories, and the €50,000 limit applies to each of them:

• Accounts in foreign financial institutions (article 42 bis of the tax procedure regulation).
• Securities, rights, insurance and annuities held or managed abroad (article 42 ter).
• Real estate and rights over real estate abroad (article 54 bis).

The return is filed from 1 January to 31 March of the following year, and in later years only if the value of a category has risen by more than €20,000 since the last return. The AEAT filing period page shows the dates for each year.

Modelo 721 is a separate return for virtual currency held abroad with a custodian that holds the private keys for third parties, with the same €50,000 test in article 42 quater. Our guide to Modelo 720 in Spain covers both forms in detail.

UK pension plans and Modelo 720

In binding ruling V0890-24, the DGT held that rights in a foreign pension plan are not reportable on Modelo 720 before one of the contingencies covered by the plan occurs. The exception is a plan that gives the member a surrender right on terms similar to a life insurance policy.

Penalties after the 2022 reform

The Court of Justice of the European Union held in case C-788/19 (27 January 2022) that Spain’s old regime breached EU law. Ley 5/2022 repealed the per-item fines and the 150% charge, and the declaration itself remains compulsory.

For a late or missing return with no loss to the Treasury, article 198 of the General Tax Act sets a fine of €20 for each datum, with a minimum of €300 and a maximum of €20,000, halved if you file late without a prior request. Which article applies to an error or omission is a legal question for your case, so contact us if you have not filed.

UK income reporting

British nationals who become Spanish tax residents declare worldwide income on Modelo 100. Our walkthrough on how to declare UK income in Spain covers rental income, employment income, dividends and interest.

Healthcare for British expats in Spain

Access to the Spanish public health system depends on your residence category, your social security position and, for some pensioners, an S1 form issued by the UK.

Routes to healthcare

• UK State Pension recipients: the UK government guidance on healthcare in Spain says people who receive a UK State Pension or an exportable benefit can be eligible for an S1 form, which is registered at the INSS and paid for by the UK. The UK decides eligibility.
• Employees and self-employed people in Spain: covered through their Spanish social security affiliation.
• Non-lucrative visa holders: need health insurance for the visa and for each renewal under articles 61 and 64 of Real Decreto 1155/2024. The Spanish Consulate in London also accepts a receipt of S1 registration.
• Convenio especial: after at least one year of continuous residence, the special agreement gives access to public healthcare for €60 a month under 65 and €157 a month from 65. The UK government guidance says you cannot join it if the UK pays for your healthcare through an S1.

For an overview of public, private and bilateral arrangements, see our guide to the Spanish healthcare system. If you are unsure which route fits your case, contact us.

Property, driving and everyday life

Property ownership, driving licences and day-to-day paperwork are the areas where British expats notice the change most.

Property ownership after Brexit

British nationals can still buy and own property in Spain. What changed is the tax position of non-resident owners from the UK.

Under the AEAT note on the consequences of Brexit, UK residents pay 24% on rents instead of the 19% that applies to EU and EEA residents, and cannot deduct expenses. Gains on a sale are taxed at 19% for every non-resident, and under article 25 of the non-resident income tax law the buyer withholds 3% of the price on account.

The AEAT’s note on the Modelo 210 deadlines says that, for rents accrued from 2026, grouped returns are filed in the first 20 days of April of the following year.

Our guides to buying a property in Spain, Spain’s regional property taxes, legal fees for buying Spanish property and selling property in Spain as a non-resident cover the transaction side.

UK driving licences in Spain

The UK government guidance on driving in the EU says UK licence holders can exchange their licence for a Spanish one without a practical or theory test. If you move to Spain on or after 16 March 2023, your valid UK licence is recognised for 6 months from the date you obtained residence, so the exchange should be done within that period.

Short-term rentals

A Supreme Court judgment of 19 May 2026 annulled most of the national rental registry rules in Real Decreto 1312/2024. UK landlords with tourist rentals should check the current regional rules, and our analysis of the short-term rental rules in Spain covers the position after the ruling.

Inheritance, divorce and family law for British expats

Cross-border family law is among the most technical areas for British expats in Spain. Succession law, inheritance tax in two countries and matrimonial property need to be planned together.

UK inheritance tax after you move to Spain

From 6 April 2025, HMRC says, UK inheritance tax moved from being based on domicile to being based on long-term UK residence. Section 6A of the Inheritance Tax Act 1984 defines a long-term UK resident as someone who was UK resident for at least 10 of the previous 20 tax years. The HMRC guidance for long-term UK residents says Inheritance Tax is charged on overseas assets, as well as UK assets, while you hold that status.

Leaving the UK does not end the status at once. It ends after a run of tax years as a non-UK resident, and the length of that tail depends on how many of the last 20 UK tax years you were resident:

The table follows subsections (2) and (3) of section 6A. The same section also ends the status after any 10 consecutive non-resident years within the previous 19.

The UK has no inheritance tax treaty with Spain: HMRC’s list of inheritance tax agreements does not include it, and where there is no agreement HMRC gives unilateral relief for similar foreign tax on assets located in that country. Spanish residents are taxed on succession on their worldwide assets under article 6 of Ley 29/1987, and article 23 gives a credit for similar tax paid abroad.

How the UK and Spanish taxes interact for your estate depends on your assets, your years of UK residence and where you live, so contact us before you rely on any of this. Our guides to international inheritances in Spain and to writing a Spanish will as a UK national cover the Spanish side.

Succession law and your will

Under EU Regulation 650/2012 the law of your habitual residence at death governs your succession as a whole (article 21(1)). Article 22 allows you to choose instead the law of the State whose nationality you hold.

A common approach is a Spanish will for the Spanish assets that records an express choice of law. Whether and how to do this depends on your family, assets and any UK will, and our note on the role of an international inheritance lawyer sets out the planning options.

Cross-border divorce

UK-Spanish couples who divorce face questions of jurisdiction, applicable law, financial provision and the recognition of UK orders in Spain. Our guide to divorce in Spain for expats addresses the post-Brexit framework.

What has changed for British expats in 2025 and 2026

• 6 April 2025: UK inheritance tax follows the long-term residence test, as set out above.
• 3 April 2025: the Golden Visa closed to new applications under Ley Orgánica 1/2025.
• 20 May 2025: Real Decreto 1155/2024 became the immigration regulation, with its rules for the non-lucrative visa in articles 61 to 64.
• 1 January 2025: the top rate of the savings scale became 30% for savings income above €300,000.
• 12 October 2025 and 10 April 2026: the Entry/Exit System started and became fully operational.
• 19 May 2026: the Supreme Court annulled most of the national short-term rental registry rules.
• 2026 to 2027: new Modelo 210 deadlines apply from rents accrued in 2026, and the Valencian wealth tax minimum of €2,000,000 applies to wealth held on 31 December 2026.
• Last quarter of 2026: ETIAS is scheduled to start.

Frequently asked questions about British expats in Spain

Can UK citizens still move to Spain after Brexit?

Yes. UK nationals can move to Spain through third-country immigration routes, including the non-lucrative visa, the digital nomad visa, the entrepreneur and startup routes and family reunification. Free movement no longer applies, so a visa application from outside Spain is normally the first step.

What rights do Withdrawal Agreement holders keep?

British nationals who were legally resident in Spain before 31 December 2020 and registered under the Withdrawal Agreement keep protected residence rights. The UK government guidance says the TIE is the only residency document listed in the Agreement, so holders of the older green certificate are advised to exchange it.

How is Spanish tax residence determined?

You are a Spanish tax resident if you stay more than 183 days in Spain in a calendar year, or if the main base of your activities or economic interests is in Spain. Residence is also presumed, unless you prove otherwise, when your spouse and dependent minor children live habitually in Spain, and the UK-Spain convention has tie-breaker rules for dual residents.

Do I need to file Modelo 720?

Yes, if you are a Spanish tax resident and the assets you hold abroad in a category (accounts, securities and insurance, or real estate) exceed €50,000. The return is filed between 1 January and 31 March, and the 2022 reform replaced the old per-item fines, although the declaration remains compulsory.

Is the UK State Pension taxed in Spain?

In binding ruling V2460-21 the DGT treated a UK State Pension as a public pension under article 18(2) of the UK-Spain convention. For a British national resident in Spain it concluded that the pension is taxable only in the UK and exempt in Spain with progression, on the facts of that case. Contact us to confirm how this applies to your pension.

Can I exchange my UK driving licence for a Spanish one?

Yes. The UK government guidance says UK licence holders can exchange for a Spanish licence without a practical or theory test, and that a valid UK licence is recognised for 6 months from the date you obtain residence if you moved on or after 16 March 2023.

How long can I stay in Spain as a visitor without residence?

UK passport holders can stay in the Schengen area for up to 90 days in any 180-day period without a visa. The Entry/Exit System has been fully operational since 10 April 2026 and registers short-stay travellers at the border.

Is the Beckham Law available to British expats in Spain?

It can be, if you meet the conditions in article 93 of the IRPF Act: no Spanish tax residence in the previous five tax years and a move linked to an employment contract, remote work under the teleworking visa, a directorship, entrepreneurial activity or work as a highly qualified professional. The general income earned in Spain is taxed at 24% up to €600,000 and 47% above for the year of the move and five more years.

What happens to my UK ISAs and SIPPs when I move to Spain?

UK law keeps the tax-free status of an ISA, but the UK-Spain convention has no ISA clause and we found no AEAT or DGT ruling on ISAs. In our reading, the income and gains of a Spanish tax resident are taxable in Spain under the general IRPF rules, and our guide to UK ISAs and Spanish tax residency explains the reasoning. For SIPPs, see the pensions section above and contact us before taking benefits.

Will my UK will work in Spain?

Possibly, but it depends on your assets and family. A common approach is a Spanish will for the Spanish assets that records an express choice of law under article 22 of EU Regulation 650/2012, and our guide to writing a Spanish will explains the options.