Spanish Tax for British Expats on Costa del Sol — 2026 Guide

Andalusia applies 7% ITP on resale properties (Decreto-Ley 1/2021 Junta de Andalucía reduced it from 8%). New builds: 10% VAT + 1.2% AJD. This makes Andalusia one of the lowest ITP rates in mainland Spain, after Madrid (6%). The legal basis is the national LITPAJD (RDLeg 1/1993) as modified by Andalusian regional legislation.

The national ISD scale (Ley 29/1987) applies as the base. However, Andalusia grants a 99% reduction for direct heirs (Groups I and II: spouses, children, parents) under Ley 5/2021 Andalucía — making the effective ISD liability essentially €0 regardless of estate value. Since the 2015 reform (RDL 17/2015 implementing ECJ C-127/12), non-EU heirs including UK nationals post-Brexit can apply these Andalusian regional reductions. File Modelo 650 with the Junta de Andalucía, deadline 6 months from death.

Yes. Real Decreto 664/2023 (updated Golden Visa rules) requires a minimum property investment of €500,000 free of mortgage or encumbrances. This grants a 1-year initial Visado de Inversor, followed by a 2-year renewable Autorización de Residencia de Inversor. Gives the right to live, work and travel freely in the Schengen Area. Family members can be included. Important: the Golden Visa does NOT automatically make you a Spanish tax resident — you still need to spend 183+ days in Spain to trigger IRPF obligations.

Decree 28/2016 (Junta de Andalucía): all tourist apartments must register with the Junta (RTVA registry), display the registration number prominently, and meet minimum habitability requirements. Málaga municipality has introduced additional restrictions in certain central zones under its Plan de Regulación 2023. For tax purposes, non-residents pay IRNR at 24% (non-EU) on gross rental income, reported quarterly via Model 210.

This depends on pension type under Art. 17-18 CDI UK-Spain (1975/2013). Private or occupational pension: taxed only in Spain (as a Spanish resident) at IRPF progressive rates. UK State Pension: taxed only in the UK under Art. 18 CDI. Government service pensions (teacher, NHS, civil servant, military): taxed only in the UK. If you are a non-resident, IRNR at 24% may apply to private pension remittances — structure is critical.

Mandatory: NIE (Número de Identidad de Extranjero), Spanish bank account, proof of funds per anti-money-laundering requirements (Ley 10/2010). Strongly recommended: Spanish lawyer (abogado) for due diligence, gestor for tax representation if you will remain non-resident. Note: since Brexit, UK nationals are non-EU — subject to the same process as US or Australian buyers. No special EU free movement rights apply.