Buying Guide · 16 min

The British Buyer's Guide to Costa Blanca Property in 2026

16 May 2026 · Hansson & Hertzell

Post-Brexit rules, NIE numbers, visa options, healthcare, mortgages, and why the Costa Blanca remains the UK's favourite overseas property destination. The complete 2026 guide.

The Costa Blanca remains the most popular overseas property destination for British buyers despite post-Brexit complications. In 2025, British nationals were the largest non-Spanish buyer group in Alicante province for the seventh consecutive year. The fundamentals that made this market attractive — climate, value, accessibility, established community — haven't changed. But the rules have, and understanding them is now essential before you buy.

What Brexit Changed (and What It Didn't)

Brexit changed three things for British buyers: residency rights, the 90-day rule, and access to the EU healthcare card. It didn't change your right to buy property, take out a Spanish mortgage, own a holiday home, or rent your property out.

What hasn't changed:

• British nationals can freely purchase property in Spain
• No restrictions on property ownership, mortgage eligibility, or rental activity
• The buying process is identical to pre-Brexit

What has changed:

• You need a visa to live in Spain for more than 90 days in any 180-day period
• You cannot simply move to Spain as an EU citizen could
• You lost access to the European Health Insurance Card for routine Spanish healthcare

The 90-Day Rule: What It Means for Holiday Home Owners

The 90/180-day rule is the most commonly misunderstood post-Brexit regulation. The rule: British nationals can spend a maximum of 90 days in any rolling 180-day period in the Schengen Area (which includes Spain) without a visa.

This is the combined limit across all Schengen countries. If you've spent 30 days in France and 30 days in Germany, you have 30 days remaining for Spain before hitting the limit.

What this means in practice for holiday home owners:

Most British buyers who purchase a Costa Blanca property for holiday use — 4–8 weeks per year — are completely unaffected. 90 days is more than enough for a generous holiday schedule.

Where it becomes an issue: buyers who intended to spend extended periods (3–6 months) in Spain as a semi-permanent arrangement. These buyers now need to either apply for a visa or structure their time carefully across the 180-day window.

Important: Spain does not currently stamp passports at the border for British nationals, and the EU Entry/Exit System (EES) which would track this electronically has been delayed multiple times. However, the legal limit exists and should be respected.

Visa Options for British Buyers Who Want More Time

Non-Lucrative Visa (NLV): The most popular option for retirees and those with passive income who want to live in Spain year-round without working. You apply at the Spanish consulate in the UK before moving. Requirements include proof of passive income (~€2,300/month for an individual), private health insurance, clean criminal record, and medical certificate. Grants legal residency for one year, renewable.

Digital Nomad Visa: Available since 2023 for remote workers employed by non-Spanish companies. More flexible income requirements, faster application process in many cases. Designed for the growing remote-working market.

Golden Visa: Spain announced changes to the Golden Visa programme in 2025 — confirm current eligibility with an immigration specialist, as this programme has been subject to significant changes.

Getting Your NIE Number: Essential First Step

The NIE (Número de Identificación de Extranjero) is your Spanish tax identification number. Without it, you cannot complete a property purchase, open a Spanish bank account, or register utilities. Every British buyer needs one.

How to get it in the UK: Apply at the Spanish consulate or through the VFS Global appointment system. You'll need to provide a reason (property purchase is acceptable) and submit the EX-15 form with supporting documents. Processing takes 2–6 weeks. Apply several weeks before you need it.

How to get it in Spain: At the Comisaría Nacional de Policía in Alicante or your local area with your passport, EX-15 form, and €10.60 in official tax fees. Appointments can be scarce — book well in advance or consider a specialist who can assist.

Via power of attorney: If you can't travel, your Spanish lawyer can obtain the NIE on your behalf with a signed power of attorney.

Opening a Spanish Bank Account

You need a Spanish bank account for: property purchase payments, monthly community fee direct debits, IBI property tax, utility bills, and mortgage payments if applicable.

Most major Spanish banks — BBVA, CaixaBank, Sabadell, Bankinter — accept British non-resident customers. Requirements: passport, NIE, proof of UK address, and sometimes proof of income. Some banks now offer remote account opening; most still prefer in-branch for non-residents.

Mortgages for British Buyers

British nationals can access Spanish mortgages on competitive terms despite Brexit. Key parameters for non-resident foreign buyers:

• Maximum LTV: 60–70% (lower than for residents)
• Terms: Up to 25 years (some banks offer 30)
• Rates: Variable (Euribor + spread) or fixed. Current fixed rates 3.5–4.5% for 20-year terms (verify at time of application)
• Age limit: Most banks require mortgage repayment before age 70–75

British buyers sometimes find Spanish lenders more competitive than UK buy-to-let mortgages for overseas property. Get mortgage agreement in principle before starting your property search — it focuses the search and strengthens your negotiating position.

Healthcare for British Buyers in Spain

Holiday visits: Ensure your UK travel insurance covers Spanish medical treatment. The GHIC (Global Health Insurance Card) replaced the EHIC for British nationals — check if yours covers Spain (coverage is for emergency treatment only, not routine care).

Legal residents (NLV holders): You need private health insurance as a visa condition. Once you obtain long-term residency after 5 years, access to the public system may become available — confirm current rules with an immigration specialist.

Private health insurance in Spain: Excellent and affordable. A comprehensive policy for a healthy 60-year-old runs €80–€130/month. English-speaking doctors throughout the Costa Blanca. We recommend establishing private coverage immediately on purchase regardless of residency status.

Tax Obligations for British Property Owners

Non-resident income tax (IRNR): All non-resident property owners in Spain pay an annual "imputed income tax" on properties that are not their primary residence and are not formally rented out. This is a notional tax on the deemed rental value of the property — typically 0.4–0.5% of the cadastral value annually. Your Spanish tax advisor files this on your behalf annually.

If you rent the property: Rental income is taxable in Spain as a non-resident. Since Brexit, British nationals are taxed at 24% (the non-EU non-resident rate) rather than 19% (the EU/EEA rate). This is a meaningful difference for rental investors — a key Brexit impact that is often overlooked.

IBI (property tax): Annual local property tax charged by the municipality, paid by the property owner. Typically €400–€1,500/year depending on cadastral value and municipality.

CGT on sale: When you sell, capital gains are taxed and the buyer retains 3% as withholding. See our separate guide on Capital Gains Tax for full details.

The Honest Assessment: Is the Costa Blanca Still Worth It for British Buyers?

Yes — with eyes open. Brexit added complexity and cost (visa requirements, higher rental income tax rate, healthcare changes). These are real and shouldn't be minimised. But the underlying proposition — affordable Mediterranean property, 320 days of sunshine, established British community, direct flights from most UK airports — remains as strong as it was before.

The administrative burden has shifted from zero to moderate. Manageable with the right professionals around you. The buyers who struggle are those who try to navigate Spanish residency, tax, and property law without specialist help. The buyers who thrive engage a good lawyer, a good tax advisor, and a good estate agent from the start.

We've been helping British buyers on the Costa Blanca for over twenty years, including through the Brexit transition. Contact us — we'll give you a clear, honest picture of what your budget buys and what the process looks like in practice.

Frequently Asked Questions

Can British citizens still buy property in Spain after Brexit?

Yes, absolutely. Brexit has not restricted British citizens from buying property in Spain. The purchasing process, taxes, and legal framework are identical to those for other non-EU buyers. What changed is immigration rights: British citizens can now only spend 90 days in any 180-day period in the Schengen Area without a visa or residency permit.

Do British buyers pay a higher tax rate than EU buyers in Spain?

British buyers pay the same ITP (transfer tax) on resale properties — 9% in Valencia from June 2026. However, as non-EU residents, Britons pay 24% income tax on Spanish rental income and deemed income (IRNR), compared to 19% for EU/EEA residents. Capital gains tax is also 24% for non-EU residents versus 19% for EU residents.

What is the 90-day Schengen rule for British property owners?

British citizens can spend a maximum of 90 days in any 180-day rolling period in the Schengen Area (26 countries including Spain). This means if you own a holiday home in Spain, you cannot simply stay all summer without careful planning. The rule applies from the first day of entry into any Schengen country — not just Spain.

Can British buyers get a Spanish mortgage?

Yes. Spanish banks including Sabadell, CaixaBank, BBVA, and Santander offer mortgages to British non-residents. Typical terms: up to 70% of the purchase price (compared to 80% for residents), interest rates linked to Euribor, and maximum loan terms of 20–25 years. UK income is accepted but must be documented. Pre-approval is strongly recommended before making offers.

What is the Non-Lucrative Visa for British retirees?

The NLV allows British citizens to live legally in Spain without working. Requirements: passive income of approximately €2,400/month (2026 figure), comprehensive private health insurance (as you no longer qualify for NHS coverage in Spain), and a clean criminal record. You apply at the Spanish consulate in the UK. It is renewed annually and leads to permanent residency after 5 years.

Is a NIE number still required post-Brexit for British buyers?

Yes. The NIE (Número de Identificación de Extranjero) remains mandatory for all property purchases, bank accounts, and utility contracts regardless of Brexit. You apply at the Spanish consulate in the UK or at the Oficina de Extranjeros in Spain. Processing takes 2–6 weeks. Your lawyer can apply on your behalf with a notarised power of attorney.

Do I need to declare my Spanish property to HMRC?

Yes. UK tax residents must declare all overseas income and gains to HMRC. Rental income from Spanish property must be reported on your UK Self Assessment. Capital gains from selling must also be declared. The Spain-UK double taxation treaty prevents double taxation, but you must declare and claim treaty relief actively — it is not automatic.

What healthcare options do British property owners have in Spain?

Short visits: GHIC (Global Health Insurance Card) covers emergency treatment. For longer stays or residency: private health insurance is the standard solution. Major providers with English-speaking networks: Sanitas, Cigna Global, Bupa International, and AXA. Monthly premiums for a healthy 55-year-old: approximately €150–300. Some British residents also access Spanish public healthcare via social security registration after obtaining residency.

Can I rent out my Costa Blanca property when I am not using it?

Yes. You need a VFT tourist licence from the Valencian Community government before advertising on Airbnb, Booking.com, or similar platforms. As a non-resident, rental income is taxed at 24% IRNR (non-EU rate). EU residents pay 19%. You must file quarterly IRNR returns if you have rental income. Property management companies handle all of this for a fee of 18–25% of gross rental income.

What is the process for transferring money to Spain to buy property?

Large transfers from UK to Spain should be made via specialist currency exchange brokers (Wise, OFX, Moneycorp) rather than high-street banks — you can save 1–3% on the exchange rate. Transfers over €10,000 must be declared to Spanish authorities (your lawyer or bank handles this). Funds should arrive in a Spanish account or your lawyer's client account before the notarial signing.

Are there any restrictions on how much property British citizens can own in Spain?

No restrictions. British citizens can buy any number of properties in Spain, of any type and value. There are no caps on foreign ownership, no restrictions on resale, and no restrictions on repatriation of sale proceeds to the UK (subject to tax declarations).

What is the buying timeline for British buyers?

From agreeing a price: 1–2 weeks to instruct a lawyer and apply for NIE. 2–4 weeks for due diligence. 1–4 weeks for mortgage approval (if applicable). 1–2 weeks to arrange signing. Total: approximately 6–10 weeks for a straightforward resale purchase. New builds: 6–36 months from reservation to completion.

Does owning property in Spain affect my UK tax status?

Simply owning property does not affect your UK tax residency. What matters is where you spend your time and where your "centre of life" is. If you spend more than 183 days per year in Spain, you may become Spanish tax resident, which affects your global income tax position. Take specialist advice from a dual-UK-Spain tax adviser before spending significant time in Spain.

What are the ongoing annual costs for a British owner?

Budget for: IBI (local property tax, €300–1,500/year), community fees if in a complex (€600–3,600/year), rubbish collection (€100–200/year), IRNR deemed income tax (typically €200–800/year depending on cadastral value), building insurance (€300–600/year), and utility standing charges. Total annual ownership costs for a typical apartment: €2,000–6,000/year before utilities.

Why should I use Hansson & Hertzell as a British buyer?

We have worked with British buyers for over 20 years and understand the specific post-Brexit questions — from 90-day rule planning to UK mortgage portability to HMRC reporting obligations. Our team is English-speaking and our network of lawyers, tax advisers, and currency specialists all have experience with British buyers specifically. Contact us for a free, no-pressure consultation.