Spain remains one of the most popular destinations for UK nationals seeking a warmer climate, a relaxed lifestyle, and access to European culture — but the financial and administrative landscape has changed materially since Brexit. UK nationals are now third-country nationals in the EU, which means freedom of movement no longer applies and the process of establishing legal residency in Spain requires planning.
This guide covers the key financial and administrative steps for UK nationals intending to move to Spain.
Visa options post-Brexit
UK nationals intending to stay in Spain for more than 90 days in any 180-day period now require a visa or residency permit. The main options as of 2026 are:
Non-Lucrative Visa (NLV). The most widely used route for retirees and those with investment income or savings. Applicants must demonstrate they will not work in Spain and have sufficient passive income or savings to support themselves (minimum income thresholds apply and are updated periodically). The NLV must be applied for at the Spanish consulate in the UK before arrival. Initial permission is for one year, renewable in two-year increments, with permanent residency available after five years of legal residence.
Digital Nomad Visa. Introduced under Spain's Ley de Startups, this route allows non-EU nationals who work remotely for non-Spanish employers or clients to reside in Spain. Income thresholds and documentation requirements apply. The visa comes with a special tax regime (see below).
Investor Route. Residency through investment — historically including property purchases of €500,000 or more (the "Golden Visa"). The property route for the Spanish Golden Visa was closed on 3 April 2025. No new applications under that route are accepted. Other investment routes (capital investment, business creation) may still exist under evolving legislation, but the property-based route that was most widely used by UK nationals is no longer available.
Employment. If you have been offered employment by a Spanish employer or will be seconded to Spain by a UK employer, this creates its own residency pathway.
The NIE number: your essential identifier
The Número de Identificación de Extranjero (NIE) is a tax identification number issued to foreigners with an economic or administrative connection to Spain. It is not a residency permit in itself — it is a unique identifier that you will need for virtually every financial transaction in Spain: opening a bank account, buying or renting property, signing a utility contract, paying taxes, or purchasing a vehicle.
NIE applications can be made at a Spanish consulate in the UK (before arrival) or at a police station in Spain (after arrival, by appointment). Processing times vary and appointments can be scarce in popular areas. Applying from the UK before you move can save significant delay.
Spanish bank accounts
Opening a Spanish bank account as a non-resident (before obtaining Spanish residency) has become more difficult in the post-AML (anti-money laundering) regulatory environment. The main Spanish banks — CaixaBank, Banco Santander, BBVA, Sabadell, and Bankia (now merged with CaixaBank) — each have their own requirements.
For non-residents, many banks require:
- Passport
- NIE number
- Proof of address in Spain (a rental contract or utility bill)
- Source of funds documentation
Some banks are more accommodating than others for non-resident accounts. BBVA and Santander in particular have been used by UK nationals successfully, though requirements and policies change. Online/fintech banks with Spanish licences (such as certain neobanks operating in the EU) may offer an easier initial route.
A non-resident account gives access to basic banking services but may have limitations. Once you have residency and are registered as a resident (empadronamiento — registered on the municipal register), upgrading to a resident account with full services is straightforward.
Tax registration: establishing Spanish tax residency
Spanish tax residency arises if you spend more than 183 days in Spain in a calendar year, or if Spain is the centre of your economic interests. If you are moving to Spain with the intention of living there, you will typically become Spanish tax resident from the year you arrive, depending on the timing.
Spanish tax residents pay income tax (IRPF) on their worldwide income at progressive rates. As of 2026, rates range from around 19% at the lower end to 47% at higher income levels, with an additional regional component that varies by autonomous community. The exact rates depend on which community you reside in — rates in Madrid are among the lowest in Spain; rates in Catalonia are among the highest.
Modelo 030. This is the declaration used to inform the AEAT (the Spanish tax authority) of your tax identification details and change of address. It is one of the first administrative steps after arriving.
The Beckham Law (Ley Impatriada). Named informally after the footballer who famously benefited from it, this regime allows certain individuals moving to Spain for work to pay a flat 24% rate on Spanish-source income for up to six years, rather than the standard progressive rates. The Digital Nomad Visa regime incorporates a similar (though not identical) regime. Availability and terms depend on individual circumstances.
Modelo 720: declaring overseas assets
Modelo 720 is a declaration of overseas assets that Spanish tax residents must file if they hold assets outside Spain above specified thresholds in three categories: bank accounts, investments (including shares, funds, and insurance products), and real estate. The declaration is informational — it does not in itself trigger tax — but failure to file correctly has historically attracted severe penalties.
After a European Court of Justice ruling in 2022 found Spain's penalty regime disproportionate, the penalties were scaled back. As of 2026, the Modelo 720 regime remains in place with more proportionate penalties, but the obligation to declare remains. UK nationals moving to Spain with significant overseas assets — UK property, UK pension funds, UK investment portfolios — should take specific advice on their Modelo 720 obligations.
Social security
Spanish social security covers healthcare (once you are a legal resident contributing to the system) and, over time, entitlement to a Spanish state pension.
For UK nationals:
If employed by a UK employer. Under the post-Brexit arrangements, the rules on where social security contributions are paid for workers with cross-border employment have become more complex. In broad terms, you may continue to pay UK National Insurance in the early period of working abroad from the UK — specific rules apply to secondments and to remote workers.
Maintaining UK National Insurance contributions. If you are not working or are not covered by a UK employer's contributions, you can make voluntary UK NI contributions (Class 2 or Class 3) to protect your UK State Pension entitlement. For most people within reach of a full State Pension, this is worth doing — the cost-to-benefit ratio of voluntary contributions is generally excellent.
Convenio especial (special agreement with Spanish social security). Non-workers who wish to access the Spanish public health system through social security rather than private insurance can enter into a special contribution agreement.
Healthcare
On arrival in Spain, UK nationals are not automatically entitled to use the Spanish public health system. The GHIC (Global Health Insurance Card, successor to the EHIC) provides temporary coverage for medical treatment needed during a visit, but is not a long-term solution for residents.
Options for healthcare coverage:
Private health insurance. Most UK nationals moving to Spain take out comprehensive private health insurance. Premiums vary with age and coverage level; major providers include Sanitas, Adeslas, and international providers such as Cigna and AXA. For those applying for the Non-Lucrative Visa, private health insurance covering all risks is typically a requirement.
Social security registration. Once working and contributing to Spanish social security, or through a convenio especial arrangement, you gain access to the public health system (tarjeta sanitaria). Quality of public healthcare varies by region; waiting times can be long for specialist care in some areas.
Buying property in Spain
Financing. Spanish banks offer mortgages to non-residents, but typically at lower loan-to-value ratios than for residents — 70% LTV or below is common for non-resident buyers, meaning a minimum 30% deposit. Rates and terms vary.
Purchase costs. Buying in Spain involves:
- ITP (Impuesto de Transmisiones Patrimoniales) — transfer tax on resale properties, typically 6–10% depending on the region
- VAT (IVA) of 10% applies to new-build properties instead of ITP
- Notary fees (escritura pública)
- Land registry fees
- Legal fees (solicitor/gestor — strongly recommended)
- NIE requirement for the purchase
Buying process. The typical sequence involves an initial reservation contract, a private purchase contract (contrato de arras) with deposit, and completion before a notary. Using a Spanish property lawyer independent of the estate agent and developer is strongly recommended.
This article is for general information purposes only and is based on rules as understood in June 2026. Spanish tax and immigration law changes regularly. This article does not constitute legal, tax, or immigration advice. Please consult qualified independent advisers in both the UK and Spain before proceeding. Global Investments can introduce you to appropriate specialists — contact us to discuss your situation.
This article is for general information only and does not constitute financial, legal or tax advice. Rules, prices and regulations change; verify current requirements with a qualified adviser before acting.