Buying property in Spain after Brexit: Real estate in the Canary Islands

The Canary Islands is one of the most popular destinations in Spain for foreigners for buying a holiday or retirement home, or even a primary residence. After Brexit, the question often arises as to how the process has changed from both an immigration and taxation perspective. Ecovis expert Natalia Bonilla answers the most important questions.

Ms Bonilla, can people still buy a property in Spain after Brexit?

Of course, everyone can buy property in Spain regardless of their citizenship and whether they are from the EU or not. For the British, the purchasing process remains the same after Brexit.

How long can people stay in the property for?

For 90 days in a period of 180 days, without any need to obtain a tourist visa. For longer periods, British citizens are required to obtain a regular residence visa.

Which visa options are available for Britons wishing to stay for periods exceeding 90 days?

There are different visas covering different personal circumstances: a non-lucrative residence visa (for people who do not plan to work in Spain and have sufficient financial means and full-cover health insurance), a “Golden Visa” (a suitable option for investors, for example those investing EUR 500,000 in real estate, allowing the holder the possibility to work in Spain), a digital nomad visa, etc.

We will be happy to advise you on legal and tax issues relating to the purchase of real estate in Spain or questions on residence permits.

Natalia Bonilla, laywer, partner, ECOVIS Legal Spain – Canary Islands, Spain

What is seen as “sufficient financial means”?

This is linked to an annual index (IPREM), so it changes slightly every year. For 2023, the amount is set at EUR 2,400 per month (EUR 28,800 per year) for the permit holder and EUR 600 per month (EUR 7,200 per year) for each family member accompanying the permit holder.

Is there any possibility to obtain a permanent residence permit?

Of course. The visas referred to above have a limited initial duration (1 to 3 years), but all of them can be renewed for subsequent periods of 2 to 5 years depending on the type of permit. After 5 years of continued residency in Spain, it is possible to obtain a permanent residence permit.

What are the main tax implications?

While nothing has changed in relation to the taxation related to the purchase, there has been an increase in the rate of non-resident income tax (IRNR), triggered by the possession (imputed income) and exploitation of the real estate, from 19% to a 24%.

For further information please contact:

Natalia Bonilla, lawyer, partner, ECOVIS Legal Spain – Canary Islands, Spain
Email: natalia.bonilla@ecovis.es