The UK is Ibiza’s biggest international market, and since Brexit British buyers face rules that EU buyers don’t. More than 1.8 million passengers flew between the UK and Ibiza in 2025, more than from any other country, and the British are the largest group of foreign home buyers in Spain. A British passport now means a 90-day limit, higher Spanish tax on rental income and a visa for anyone who wants to stay longer. This guide is for British buyers of prime homes on Ibiza: what Spain charges, what HMRC still expects, and the inheritance point most families miss.
UK-Ibiza passengers, 2025
Days without a visa
UK-Spain treaty, in force 2014
Every rule cited
Last updated: October 2026
By: Alexander Thornbury
What changed for British buyers after Brexit?
Three things, and none of them is the right to buy. British citizens can still buy freely on Ibiza, with an NIE tax number and a Spanish lawyer, exactly as before. What changed is everything around the purchase. You are now outside the EU’s free movement, so your time in Spain is capped unless you hold a visa. Spain taxes non-EU owners more heavily on rental income. And the golden visa that once came with a EUR 500,000 purchase closed on 3 April 2025, so the house no longer brings a residence permit at any price.
The demand hasn’t gone away. The UK was Ibiza airport’s largest international market in 2025, with 1,870,796 passengers, and British buyers made 6.99% of all foreign home purchases in Spain in the second quarter of 2026, more than any other nationality. Our main Ibiza guide covers the market as a whole.
What does Spain charge a British owner?
The same as anyone to buy, more than an EU owner to let. Transfer tax on a resale runs from 8% to 13% in Balearic bands, so EUR 600,000 on a EUR 5M villa, and Spain charges wealth tax on Spanish assets above EUR 700,000, which is about EUR 53,500 a year on EUR 5M of net assets. Neither depends on your passport. Our Ibiza property tax guide works through both.
The difference is income tax. If the home isn’t let, you pay 24% on a notional income of 1.1% of its cadastral value, where an EU owner pays 19%. If you let it, Spain taxes British owners at 24% of the gross rent with no deduction for costs, while EU owners pay 19% on the net. A National High Court ruling in July 2025 found that rule discriminatory, but it can still be appealed and the tax office has not changed its approach. On a sale, everyone pays 19% on the gain, and the buyer withholds 3% of the price for the tax office.
| Spanish tax (2026) | British owner | EU owner |
|---|---|---|
| Transfer tax on a resale | 8% to 13% | 8% to 13% |
| Home not let: notional income | 24% of 1.1% of cadastral value | 19% of 1.1% of cadastral value |
| Rental income | 24% of gross rent | 19% of net rent |
| Capital gain on sale | 19% | 19% |
| Wealth tax | Above EUR 700,000 | Above EUR 700,000 |
How does HMRC tax an Ibiza home?
On the same income and gains, with credit for what Spain has already taken. If you stay UK-resident, HMRC taxes your worldwide income and gains, so the Ibiza villa sits in two tax systems at once. The UK-Spain tax treaty, signed in 2013 and in force since 12 June 2014, survived Brexit and gives credit relief: you pay the higher of the two bills, not both in full.
A sale shows how it works. Spain takes 19% of the gain. HMRC then taxes the same gain at the UK rate for residential property, 24% for higher-rate taxpayers and 18% in the basic band, after the GBP 3,000 annual exemption, and you claim the Spanish tax back through Foreign Tax Credit Relief on the SA106 pages of your return. In practice you top up from the Spanish rate to the UK rate. Rental income works the same way: declared in the UK, with credit for the Spanish tax. The UK has no wealth tax, so the Spanish one has nothing to offset.
| Tax on the Ibiza home | Spain | UK (if UK-resident) |
|---|---|---|
| Gain on sale | 19% | 24% (18% basic band), credit for Spanish tax |
| Rental income | 24% of gross | Income tax, credit for Spanish tax |
| Wealth tax | Above EUR 700,000 | None |
| Inheritance | Close family: 100% Balearic relief | 40% above GBP 325,000 on worldwide assets |
What about inheritance tax?
This is where British families get caught out. On the Spanish side the news is good: since July 2023 the Balearics give children, grandchildren, spouses and parents 100% relief on inheritance tax, and heirs can use it even when the parent lived in the UK. But UK inheritance tax still reaches worldwide assets at 40% above the GBP 325,000 threshold, and with no Spanish tax to set against it, HMRC takes its full share of the villa.
On succession law, Spain applies the EU Succession Regulation even to British nationals. The estate follows the law of the country where you live at death, and your will can choose the law of your nationality instead, which keeps Spanish forced-heirship rules out of a British family’s plans. Make a Spanish will for the Spanish property, consistent with your UK one.
How long can you stay?
Ninety days in any 180 without a visa, counted across the whole Schengen area. A summer on Ibiza and a long weekend in France come out of the same allowance. To stay longer you need a visa. The non-lucrative visa suits British buyers who live on pensions or investments: it needs EUR 2,400 a month in 2026, plus EUR 600 for each dependant, and doesn’t allow work in Spain. The digital nomad visa suits those still working remotely for UK clients or employers.
Spend more than 183 days a year in Spain, or move the centre of your economic life there, and you become Spanish tax-resident, taxed in Spain on worldwide income. Our Ibiza residency guide sets out the routes and what moving does to your tax.
What should a British buyer plan for?
Currency first. You earn and save in sterling and pay in euros, from the deposit to the running costs, so the exchange rate moves the real price. A forward contract can fix the rate for the completion payment. Then the visa question, before you buy, if you plan to spend more than three months a year on the island. And a will drafted with both countries in mind.
One headline to keep in proportion: a national bill to tax purchases by non-EU residents at up to 100% was put to the Spanish parliament in May 2025. It is a proposal, not law. The checks that matter more on Ibiza are the local ones, on licences, holiday-let registration and water, set out in our buying guide. Our prime areas guide covers where on the island to look.
Key takeaways
- The UK is Ibiza’s largest international market: 1,870,796 passengers in 2025.
- British buyers can buy freely, but the golden visa closed on 3 April 2025.
- Spain taxes British owners’ rent at 24% of gross, against 19% of net for EU owners.
- HMRC taxes the same gains and rent, with credit for the Spanish tax under the 2014 treaty.
- The Balearic inheritance relief removes the Spanish bill, but UK inheritance tax still applies at 40%.
- You’re limited to 90 days in 180 without a visa.
Frequently asked questions
Can British citizens still buy property in Ibiza after Brexit?
Yes. There are no restrictions on British buyers. You need an NIE tax number and, ideally, an independent Spanish lawyer. What changed is residency, time limits and the tax on rental income.
Does buying in Ibiza give a British buyer residency?
No. Spain closed its golden visa on 3 April 2025. British buyers who want to stay longer than 90 days in 180 need a visa, usually the non-lucrative visa.
How much tax does a British owner pay on Ibiza rental income?
24% of the gross rent in Spain, with no deduction for costs, then UK income tax with credit for the Spanish tax. EU owners pay 19% of the net rent.
Do I pay UK capital gains tax when I sell my Ibiza villa?
Yes, if you’re UK-resident. HMRC taxes the gain at 24% (18% in the basic band) after the GBP 3,000 exemption, and credits the 19% Spanish tax through Foreign Tax Credit Relief.
Is there a UK-Spain double tax treaty?
Yes. It was signed in 2013, has been in force since 12 June 2014 and survived Brexit. It gives credit relief, so you pay the higher of the two countries’ tax, not both in full.
Does UK inheritance tax apply to a villa in Ibiza?
Yes, for those within UK inheritance tax: 40% on worldwide assets above GBP 325,000. The Balearic relief removes the Spanish tax for close family, so there is nothing for HMRC to credit.
Do British owners pay Spanish wealth tax?
Yes, on Spanish assets above EUR 700,000, at 0.2% to 3.5%. On EUR 5M of net Spanish assets that is about EUR 53,500 a year. The UK has no wealth tax to offset it against.
How long can I stay at my Ibiza home without a visa?
90 days in any 180, counted across the whole Schengen area, not just Spain.
Can a British buyer get a Spanish mortgage?
Yes. Spanish banks lend to non-residents, usually at lower loan-to-value ratios than to residents, and many prime buyers pay cash.
Is Spain banning non-EU buyers?
No. A bill to tax non-EU-resident buyers at up to 100% was put to parliament in May 2025, but it is a proposal, not law. A Balearic proposal to limit non-resident purchases was rejected in February 2026.
Should a British owner make a Spanish will?
Yes, for the Spanish property, consistent with the UK will. It can choose the law of your nationality under the EU Succession Regulation, which Spain applies to British nationals too.
Sources
- GOV.UK – Spain tax treaties (UK-Spain double taxation convention, in force 12 June 2014)
- GOV.UK – Capital Gains Tax allowances and rates
- GOV.UK – Inheritance Tax
- BOE – Non-Resident Income Tax Act, Royal Legislative Decree 5/2004
- BOE – Balearic Legislative Decree 1/2014 (transfer tax, wealth tax, inheritance relief)
- BOE – Organic Law 1/2025 (end of the golden visa)
- EUR-Lex – EU Succession Regulation 650/2012
- Aena – Ibiza airport 2025, passengers by market
- Colegio de Registradores – foreign buyers by nationality, Q2 2026
Figures current at October 2026. Confirm your position with advisers in both countries before you buy.
About the author
Alexander Thornbury is a published author who writes on international property, tax and residency for high-net-worth buyers across Europe. His work focuses on the practical mechanics of cross-border purchase: what a buyer actually pays, owes and signs. More at alexanderthornbury.com.