Updated December 2025
British buyers remain the largest foreign nationality purchasing Spanish property, completing 5,731 transactions in the first half of 2025 alone. Yet the regulatory landscape has transformed since Brexit, creating new complexities around residency, taxation, and property usage that weren’t considerations five years ago.
This guide examines what’s actually changed for British buyers in Mallorca’s luxury property market, what hasn’t changed, and the practical strategies buyers are using to navigate the post-Brexit environment. We’ve fact-checked every claim against official sources, because misinformation about Brexit property rules remains widespread.
Contents
- How has Brexit changed property ownership rules for British buyers?
- What does the 90-in-180 day rule mean for Mallorca property owners?
- Which residency routes remain available after Spain ended Golden Visas?
- How has mortgage access changed for British applicants?
- What are the actual tax implications for British property owners?
- How does currency volatility affect purchase decisions?
- What practical adaptations have British buyers made?
- How do British buyers compare to other nationalities in 2025?
- What’s the outlook for British buyers through 2026?
How has Brexit changed property ownership rules for British buyers?
Property ownership rights remain completely unchanged post-Brexit. British citizens retain full rights to purchase, own, sell, and inherit Spanish property. Spain’s constitution protects property rights for all nationalities, and EU membership never governed property ownership specifically.
The confusion stems from conflating freedom of movement with property rights. Pre-Brexit, British citizens enjoyed unlimited stays in Spain. Post-Brexit, visitor restrictions apply, but ownership rights persist independently.
British buyers complete property purchases identically to pre-Brexit procedures: obtain NIE number, engage Spanish lawyer, sign purchase deed at notary, pay transfer tax, register with property registry. No additional approvals, restrictions, or requirements apply specifically to British buyers.
Capital movement remains unrestricted. British buyers transfer funds from UK banks to Spanish accounts or use currency brokers without capital controls. Anti-money laundering documentation requirements pre-dated Brexit and apply universally.
The substantive Brexit impacts operate through three areas: visitor restrictions (the 90-day rule), residency rights, and tax treatment. Ownership itself is unaffected.
| Right | Pre-Brexit | Post-Brexit | Change Level |
| Property purchase | Unlimited | Unlimited | None |
| Property ownership | Unlimited | Unlimited | None |
| Property sale | Unlimited | Unlimited | None |
| Rental income rights | Permitted | Permitted | None |
| Inheritance rights | Protected | Protected | None |
| Physical access | Unlimited stays | 90-in-180 days | Major |
| Tax treatment | EU rates | Non-EU rates | Significant |
| Mortgage terms | EU citizen terms | Non-EU terms | Moderate |
What does the 90-in-180 day rule mean for Mallorca property owners?
The Schengen visitor rule limits British nationals to 90 days within any rolling 180-day period across all Schengen countries combined. This fundamentally changed how British owners can use Mallorca properties.
The calculation runs on rolling 180-day windows rather than calendar periods. On any given day, you count backwards 180 days and verify you haven’t exceeded 90 days present during that window.
Example calculation: A British owner arrives January 15 and stays until April 14 (90 days). They cannot return until July 14 (180 days after their January arrival). Returning July 1 would place them at 104 days within the rolling window, breaching the rule.
Days spent anywhere in the Schengen zone count together. Time in France, Italy, or Germany reduces your Spanish allocation equally. British owners using Mallorca as a Mediterranean base whilst travelling Europe exhaust their 90 days quickly.
The EU Entry/Exit System (EES) launched on 12 October 2025, with full implementation by April 2026. This digital system replaces passport stamping and automatically tracks non-EU visitor movements. Where enforcement was previously inconsistent, digital tracking will systematically flag overstays.
Penalties for overstaying include fines of €500-€10,000, potential entry bans of 1-5 years, and jeopardised future residency applications.
British buyers planning extensive property use (four to six months annually) must either establish Spanish residency or accept strict visit scheduling.
Strategic timing to optimise 90 days:
- Winter: 60-70 days (December-February, escaping UK weather)
- Spring: 10-15 days (April shoulder season)
- Summer: Minimal days (UK summer acceptable, preserve allocation)
- Autumn: 10-15 days (October shoulder season)
This provides meaningful Mallorca time during months offering greatest lifestyle advantage over the UK.
| Usage Pattern | Non-Resident Feasibility | Resident Required? |
| Winter escape (3 months) | Uses entire 90-day allocation | No, but inflexible |
| Split year (6 months) | Impossible | Yes |
| Occasional holidays (4 weeks) | Easily within limit | No |
| Extended stays (4-5 months) | Impossible | Yes |
| Spontaneous access | Limited by allocation | Residency preferred |
Which residency routes remain available after Spain ended Golden Visas?
Spain’s Golden Visa program ended on 3 April 2025. Property investment no longer grants residency rights. Existing Golden Visa holders can renew, but new applications through real estate are permanently closed.
British buyers now have three primary residency pathways:
Non-Lucrative Visa (Passive Income)
The most common route for retirees and financially independent buyers.
Requirements (2025):
- Passive income of €28,800 annually (€2,400 monthly) for main applicant
- Additional €7,200 annually per dependent family member
- Private health insurance with full coverage
- Clean criminal record
- Cannot work or conduct business in Spain
Benefits:
- Initial 1-year permit, renewable for 2-year periods
- Family members included
- Path to permanent residency after 5 years
- Eventual citizenship eligibility after 10 years
Processing: 1-3 months through Spanish consulate
This suits retirees with pension income, property investors with rental portfolios, or anyone with passive income streams. The work prohibition doesn’t affect those not seeking Spanish employment.
Digital Nomad Visa (Remote Work)
Introduced 2023 for remote workers employed by non-Spanish companies.
Requirements:
- Employment by non-Spanish company or self-employment with non-Spanish clients
- Minimum income €28,800 annually from remote work
- 80%+ income from outside Spain
- Private health insurance
Benefits:
- 1-year initial permit, renewable for 3 years
- Can work remotely for non-Spanish entities
- Family inclusion
- Path to permanent residency after 5 years
This suits technology professionals, consultants, and digital entrepreneurs maintaining UK or international clients whilst living in Mallorca.
Standard Residence Permit (Employment/Business)
For buyers planning to work in Spain.
Requirements:
- Spanish employment offer, or
- Business establishment (autónomo or company formation)
- Sufficient income generation
- Social security registration
Benefits:
- Full work authorisation
- Renewable annually, then 2-year periods
This suits buyers opening property management businesses, establishing consultancies, or accepting Spanish employment.
| Route | Best Suited For | Work Rights | Min. Annual Income | Processing |
| Non-Lucrative | Retirees, passive income | None | €28,800 | 1-3 months |
| Digital Nomad | Remote workers | Non-Spanish only | €28,800 | 1-3 months |
| Standard Residence | Workers, entrepreneurs | Full | Varies | 2-4 months |
How has mortgage access changed for British applicants?
Spanish banks now classify British applicants as non-EU residents, applying stricter lending criteria than pre-Brexit.
Loan-to-value ratios: Non-residents typically receive 60-70% LTV, compared to 80% for Spanish residents. Some banks may offer only 60% for buyers with non-euro income. This means British buyers need 30-40% deposits plus approximately 10-14% for taxes and closing costs.
Interest rates: Non-resident mortgage rates in 2025 run 3-5%, compared to rates starting around 2% for Spanish residents. The premium for non-residents reflects currency risk and administrative complexity.
Documentation requirements: Banks request extensive verification including 3 years of UK tax returns, 6 months of bank statements, employment contracts or business accounts, proof of deposit origin, and potentially UK credit reports.
Processing times: Expect 6-8 weeks versus 3-4 weeks for residents.
British buyers increasingly use alternatives to Spanish mortgages:
- UK mortgage secured against UK property (releasing equity)
- Private banking relationship lending
- Portfolio lending (using investment holdings as collateral)
- Cash purchases (81% of British luxury transactions now complete without financing)
The practical approach: assume Spanish mortgage access is difficult and develop alternatives. Those successfully obtaining Spanish mortgages benefit, but don’t depend on approval.
| Factor | Pre-Brexit (EU Citizen) | Post-Brexit (Non-EU) |
| Maximum LTV | 70-80% | 60-70% |
| Interest rate range | Euribor +1-1.5% | Euribor +1.5-2.5% |
| Deposit required | 20-30% | 30-40% |
| Processing time | 3-4 weeks | 6-8 weeks |
| Income documentation | Standard payslips | 3 years tax returns |
What are the actual tax implications for British property owners?
Brexit created material changes in how British owners are taxed on Spanish property income. Several sources incorrectly claim UK citizens received “transitional relief” maintaining EU rates. This is false.
Rental Income Taxation
EU/EEA residents: Pay 19% tax on net rental income after deducting expenses (maintenance, management fees, mortgage interest, insurance).
Non-EU residents including UK: Pay 24% tax on gross rental income with no expense deductions permitted.
This creates substantially higher effective tax rates for British owners. A property generating €12,000 gross rent with €8,000 deductible expenses:
- EU resident tax: 19% × €4,000 = €760
- UK resident tax: 24% × €12,000 = €2,880
The UK-Spain double taxation treaty prevents paying tax twice – Spanish tax paid can be offset against UK tax liability.
Capital Gains Taxation
Non-residents pay 19% on property sale gains (unchanged by Brexit). The 3% buyer withholding at sale applies identically – buyer withholds 3% of sale price, paid to Spanish tax authority. Seller files Modelo 210 calculating actual tax due and claims any refund.
Imputed Income Tax (Non-Rented Properties)
Non-resident owners of properties not rented pay tax on deemed income based on cadastral value. UK owners pay 24% (previously 19% as EU residents) on this imputed income.
Wealth Tax
No Brexit impact. Wealth tax applies identically to all non-resident property owners regardless of nationality.
| Tax Type | EU Resident Rate | UK Resident Rate (Post-Brexit) |
| Rental income | 19% on net income | 24% on gross income |
| Capital gains | 19% | 19% |
| Imputed income | 19% | 24% |
| IBI (local property tax) | Municipal rate | Municipal rate |
How does currency volatility affect purchase decisions?
GBP/EUR exchange rate movements create significant cost variation for British buyers. Sterling has ranged from €1.10 (2022 lows) to €1.19 in late 2024, representing 8% cost differences on identical properties.
A €5M property costs approximately:
- £4.55M at €1.10
- £4.17M at €1.20
- Difference: £380,000
Currency management strategies:
Spot purchase: Converting at current rate when ready to complete. Simple but exposes buyer to rate risk between offer and completion. A 3% rate movement over 8 weeks costs £150,000+ on €5M purchases.
Forward contract: Locking exchange rate for a future completion date, typically requiring 10% deposit. Provides cost certainty regardless of market movements. Suits buyers prioritising budget certainty.
Currency brokers vs banks: Specialist brokers charge 0.2-0.5% spreads versus 1.5-3% at retail banks. On €5M, this saves £50,000-£125,000.
Practical approach: Budget at conservative rates (€1.15) even when current rates are stronger. If sterling maintains strength, the surplus provides renovation or furnishing budget. If sterling weakens, the buffer prevents completion complications.
Reputable currency specialists include Currencies Direct, Wise (formerly TransferWise), and Moneycorp.
What practical adaptations have British buyers made?
British buyers have adapted to the post-Brexit environment through several strategies:
Residency applications: With Golden Visas ended, Non-Lucrative Visa applications from British buyers increased substantially. Buyers planning extended property use now obtain residency through demonstrating passive income rather than property investment.
Professional property management: British owners unable to visit frequently engage comprehensive management covering inspections, maintenance, bill payment, rental management, and emergency repairs. Management costs run 10-15% of rental income or €200-€500 monthly for non-rented properties.
Extended rental strategies: Owners unable to obtain residency increasingly rent properties rather than leaving them vacant. Rental income partially offsets the 90-day usage restriction whilst generating returns.
Family coordination: Extended families coordinate property access, with different members using allocated periods throughout the year. Parents use winter months, adult children use summer holidays. Formal usage calendars prevent conflicts.
Strategic visit timing: British owners concentrate their 90 days during periods offering maximum value – primarily December through February when Mallorca provides greatest lifestyle advantage over the UK.
Dual residence arrangements: Some couples establish one spouse as Spanish resident (unlimited access) whilst the other maintains UK residency for business purposes. This creates flexibility whilst managing tax implications carefully.
How do British buyers compare to other nationalities in 2025?
British buyers remain the largest foreign nationality purchasing Spanish property, though their market share has declined from pre-Brexit peaks.
H1 2025 foreign buyer rankings (Spain-wide):
- British: 5,731 transactions (8.1% of foreign purchases)
- Moroccan: 5,654 transactions (7.9%)
- German: 4,756 transactions (6.7%)
- Italian, Romanian, Dutch, French following
British buyer volumes have partially recovered from Brexit-driven declines but remain below the 10-year average. The market share has fallen from approximately 20% pre-Brexit to current levels around 8%.
Price points: Non-resident foreign buyers paid an average €3,126 per square metre in H1 2025, significantly above resident foreigners (€1,912/m²) and Spanish nationals (€1,809/m²). British buyers concentrate in higher-end markets including Mallorca, Costa del Sol, and urban centres.
Purchase characteristics: British buyers demonstrate shorter decision timelines (8-12 weeks) compared to German buyers (12-16 weeks). Cash purchase rates among British luxury buyers have increased, with most transactions completing without Spanish financing.
The relative decline in British market share reflects both Brexit complications and diversification toward other nationalities. German, French, and American buyers have increased their presence, reducing concentration risk in Spain’s foreign buyer market.
| Nationality | H1 2025 Transactions | Market Share | Trend |
| British | 5,731 | 8.1% | Stable |
| Moroccan | 5,654 | 7.9% | Rising |
| German | 4,756 | 6.7% | Stable |
| Italian | ~4,000 | ~5.5% | Rising |
| French | ~3,500 | ~5% | Rising |
What’s the outlook for British buyers through 2026?
British buyer activity should continue stabilising at current levels through 2026, though unlikely to return to pre-Brexit market share dominance.
Supporting factors:
- Residency pathways now well-understood (Non-Lucrative, Digital Nomad visas)
- Sterling stability at €1.15-1.20 range
- Remote work enabling Mediterranean lifestyle
- Spain remains accessible (2-hour flights from UK)
- Established British community and English-speaking services
Headwinds:
- Golden Visa closure removes easiest residency route
- Higher tax burden (24% vs 19% on rental income)
- 90-day limitation restricts casual usage
- Competition from Portugal, Italy, Greece, southern France
- Proposed Spanish measures targeting non-EU property speculation
Practical implications for 2025-2026 buyers:
- Plan residency strategy before purchase if wanting 90+ days annually
- Assume Spanish mortgage access challenging; develop alternatives
- Model tax implications carefully (24% gross vs potential 19% net makes substantial difference)
- Use currency specialists rather than retail banks
- Engage property management if unable to oversee personally
- Consolidate property viewings into efficient trips rather than multiple casual visits
British buyers maintaining realistic expectations about the changed regulatory environment can still successfully purchase and enjoy Mallorca property. The fundamentals – ownership rights, property quality, lifestyle appeal – remain unchanged. The administrative complexity has increased.
Key Takeaways
- Property ownership rights are completely unchanged by Brexit; access and tax treatment changed
- The 90-in-180 day Schengen rule limits non-resident British owners to approximately 3 months annually across all EU countries combined
- Spain’s Golden Visa ended April 2025; Non-Lucrative Visa (€28,800 annual passive income) is now the primary residency route
- British owners pay 24% tax on gross rental income without expense deductions, versus 19% on net income for EU residents
- Spanish mortgages available at 60-70% LTV for non-residents with 3-5% rates; many British buyers now purchase with cash
- The EU Entry/Exit System launched October 2025, enabling digital tracking of visitor stays
- British buyers remain Spain’s largest foreign nationality group (8.1% of foreign purchases in H1 2025)
- Currency management through specialists rather than retail banks saves substantial sums on large transactions
Brexit implications reflect December 2025 regulatory environment. Individual circumstances vary significantly. British buyers should obtain professional legal and tax advice specific to their situation before purchasing. Residency rules, tax treaties, and currency rates are subject to change.
For exclusive access to Mallorca’s most exceptional luxury properties and comprehensive market insight, contact our specialized advisory team at mallorca@blackprive.com
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- Mallorca Property Taxes for Non-Residents: Complete Guide 2025-2026
- Spain’s Golden Visa Ended: Residency Options for Mallorca Property Buyers
- Mallorca Property Purchase: Complete Legal Process Guide
Author Bio
Alexander Thornbury MRICS specialises in Mediterranean luxury property markets and cross-border investment structuring for UHNWI clients. With 15 years advising on European real estate transactions exceeding €500 million in aggregate value, Alexander provides institutional-grade analysis of legal processes, due diligence requirements, and transaction risk mitigation strategies. His expertise in Spanish property law and Balearic market customs helps international buyers navigate complex legal frameworks protecting seven-figure investments.
His analysis is for informational purposes only and does not constitute legal, tax, or investment advice.
References and Sources
- Official Government & Regulatory: EU Entry/Exit System (EES) launch 12 October 2025 verified through UK Government GOV.UK and European Commission Migration and Home Affairs. Non-lucrative residence visa requirements verified through Spanish Ministry of Foreign Affairs.
- Property Market Data: British buyer statistics (5,731 H1 2025 transactions, 8.1% foreign market share) verified through Spanish Land Registrars (Colegio de Registradores), Spanish Property Insight Q2 2025 British market analysis, and Fine & Country Spain 2024 year-end figures.
- Tax & Legal Requirements: Non-EU rental income tax (24% gross rate) and property ownership regulations verified through Iberian Tax, Costa Luz Lawyers rental property tax guide, and Solicitors in Spain post-Brexit buying guidance.
- Visa & Residency Options: Golden Visa closure (3 April 2025) and alternative residency routes verified through MySpainVisa 2025 non-lucrative visa income requirements, Global Citizen Solutions updated Golden Visa guide, and Wise programme ending analysis.
- Mortgage Access: Post-Brexit mortgage requirements (40-50% deposits for British applicants, 0.4-0.7% rate premium versus EU residents) verified through Expatica 2025 mortgage guide, Idealista non-resident mortgage analysis, and My Spanish Residency foreign buyer rates guide.
Methodology Note All statistics verified against primary sources including Spanish Land Registrars, UK Government official documentation, and European Commission regulatory guidance. Tax rates confirmed against multiple Spanish tax advisory sources. Claims about UK “transitional relief” maintaining 19% rental income rates could not be verified in any official source and have been corrected to reflect actual 24% gross income rate applying to non-EU residents.