Moving to Spain from the UK means adapting to new rules — especially around taxes and residency status. Post-Brexit, UK nationals are treated as non-EU residents, and the tax implications can be substantial if you’re not properly advised.
This article explains how Spanish tax residency works, what UK citizens must declare, how to avoid double taxation, and how Borderless Lawyers ensures you remain compliant — and protected.
📍 When Are UK Citizens Taxed in Spain?
You are considered a tax resident in Spain if you meet any of the following:
| Condition | Meaning |
|---|---|
| Spend over 183 days in Spain per calendar year | Most common route |
| Primary economic interest is in Spain | Your business/income base is here |
| Spouse and dependent children live in Spain | May trigger automatic residency |
🗓️ Spain’s tax year = January 1 to December 31.
Once you are a tax resident, you are taxed on your worldwide income.
💸 Taxes That UK Citizens May Owe in Spain
✅ 1. Income Tax (IRPF)
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Progressive rates from 19% to 47%
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Applies to:
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Salary & pensions
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Rental income
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Dividends & capital gains
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Self-employment or business profits
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✅ Digital nomad visa holders may qualify for Beckham Law: 24% flat tax for 5 years on foreign-earned income.
✅ 2. Wealth Tax
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Applies to residents with net assets above €700,000 (excluding main home up to €300,000)
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Taxed on worldwide assets
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Rates: 0.2% to 2.5% depending on region and net wealth
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Includes UK property, bank accounts, investments, crypto
✅ 3. Real Estate Taxes
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IBI: Annual local property tax
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Capital Gains Tax: 19% on property sale profits (with exemptions if reinvesting or over 65)
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Rental Tax: If renting out, income must be declared and taxed
🧾 Modelo 720 – Declaring Foreign Assets
If you’re a Spanish tax resident and have over €50,000 in foreign:
| Asset Type | Examples |
|---|---|
| Bank accounts | UK current/savings accounts |
| Shares/investments | ISAs, SIPPs, brokerage accounts |
| Real estate | Homes, rentals, land in the UK |
…you must file Modelo 720 by March 31 each year.
❗Failure to declare used to lead to heavy fines — now softened by EU pressure, but non-compliance still risks penalties.
🔁 Avoiding Double Taxation – UK-Spain Treaty
Thanks to the UK–Spain Double Taxation Agreement, most UK income won’t be taxed twice.
| Income Type | Where It’s Taxed |
|---|---|
| UK pension (state or private) | Typically taxed in Spain if resident |
| UK rental income | Taxed in UK + declared in Spain (credit given) |
| Dividends | Depends on type; credit given for UK tax paid |
| Inheritance/gifts | Spain may also apply taxes — planning is key |
✅ We work with UK accountants or IFAs to coordinate cross-border compliance.
🛂 Changing Your Tax Residency (Leaving the UK)
If you move to Spain long-term, you may need to:
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Deregister as UK tax resident via HMRC
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Submit a final UK tax return
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Pay Capital Gains Tax on some assets (if disposing pre-move)
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Be aware that you may lose access to:
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UK tax allowances
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ISA and SIPP benefits
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NHS services
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✅ We coordinate UK–Spain residency shifts for clients regularly.
⚠️ Common Tax Pitfalls UK Citizens Make in Spain
| ❌ Mistake | 💥 Why It Matters |
|---|---|
| Not filing Modelo 720 | Can trigger audits and fines |
| Thinking a tourist stay avoids tax | You can be a resident even without a visa |
| Not declaring UK rental or pension income | Spain taxes global income |
| Not registering for tax properly | Missed deductions and potential penalties |
| Failing to plan inheritance | Spain has strict succession rules and taxes |
👩⚖️ How Borderless Lawyers Helps You Stay Tax Compliant
✔️ Determine if/when you become a Spanish tax resident
✔️ Register you correctly with Spanish tax authorities
✔️ Handle Modelo 720 filings
✔️ Coordinate with your UK tax advisor
✔️ Advise on wealth tax, pensions, and property sales
✔️ Help plan for inheritance, exit tax, and double taxation
✅ Clear, English-speaking legal tax guidance — for UK expats in Spain.
📞 Call to Action
Living in Spain or planning to move from the UK?
Let our lawyers simplify your Spanish tax obligations — and protect your global assets.