Taxes & Finance

UK–Spain Double Taxation Treaty: Guide for British Non-Resident Owners

The UK–Spain DTA determines how your Spanish property income is taxed post-Brexit. Spain taxes it first; the UK gives a credit. Here's what British non-residents need to know.

Updated 15 May 2026·10 min read

In short

The UK–Spain Double Taxation Convention (signed 2013) determines how Spanish property income is taxed for British owners. Spain has the primary right to tax income from Spanish property. The UK gives a credit for Spanish tax paid, so you don't pay twice on the same income. Post-Brexit, British non-residents pay 24% on Spanish imputed income (versus 19% for EU residents) — a meaningful difference for property owners.

The UK–Spain DTA: overview

The current treaty (Convention between the Government of the United Kingdom and the Kingdom of Spain) was signed in 2013 and superseded the 1975 treaty. It follows the OECD model convention closely.

Key provisions for British property owners:

The 24% post-Brexit rate

Before Brexit, UK residents benefited from the EU/EEA rate of 19% on Modelo 210 imputed income. Since 31 December 2020, UK nationals are treated as non-EU residents and pay 24%.

Impact on a typical owner:

  • Property with cadastral value €150,000
  • Imputed income: €150,000 × 1.1% = €1,650
  • At 19% (pre-Brexit): €313.50/year
  • At 24% (post-Brexit): €396/year
  • Difference: ~€82/year

For most owners with a single holiday home, the Brexit rate difference is modest. For owners with multiple properties or high cadastral values, it compounds.

How the UK credit system works

Unlike Germany (which exempts Spanish property income under Freistellungsmethode), the UK uses the credit method. This means:

  1. You declare your Spanish property income in your UK Self Assessment return
  2. You calculate the UK income tax on that income
  3. You subtract the Spanish tax paid (Modelo 210)
  4. You pay only the difference to HMRC (or nothing if Spanish tax ≥ UK tax)

For the imputed income on a typical Mallorca holiday home (usually under €5,000), the UK tax would be small, and the Spanish tax paid often covers most or all of it.

Keep your Modelo 210 receipts

HMRC may ask for proof of Spanish tax paid when you claim the foreign tax credit. Your gestoría can provide a certificate of tax paid (certificado de retenciones or the Modelo 210 filing confirmation).

UK capital gains tax on Spanish property

When you sell your Spanish property, you must also declare the capital gain on your UK Self Assessment. The gain is calculated in sterling using exchange rates on the relevant dates. You get a credit for Spanish capital gains tax paid (19% under Modelo 210).

UK CGT rates for residential property:

  • Basic rate taxpayer: 18% (2026)
  • Higher/additional rate taxpayer: 24% (2026)

If the Spanish tax (19%) approximately equals or exceeds the UK rate (18%), the net additional UK tax may be small. For higher-rate taxpayers, a small top-up may be due.

Brexit withdrawal agreement and property rights

Brexit does not affect your right to own property in Spain. Property ownership is governed by Spanish law, not EU rules. See our Withdrawal Agreement guide for what Brexit did and did not change for British owners.

Professional help

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Spanish tax filings and bureaucracy can be complex. A local gestoría can handle Modelo 210, NIE applications, and other filings on your behalf.

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