Cost of Living in Spain: What Relocating Buyers Should Know

Moving abroad changes more than the view. For buyers from the United Kingdom, the price of the property is only the starting point; what follows is a pattern of recurring costs — taxes, utilities, community fees, healthcare choices — that differ from what you are used to at home and need to be budgeted properly before you sign anything.

This page looks at those costs from the point of view of someone planning a move from the United Kingdom, without giving figures we cannot stand behind. The goal is not to alarm you but to help you arrive with realistic expectations, so the decision to buy in Spain is made with full information, not surprises.

The price on the listing is never the full cost. Resale homes carry a regional transfer tax (ITP), while new builds carry 10% VAT plus stamp duty. On top of that come notary fees, land registry fees and gestoría charges, and most foreign buyers also choose to instruct a lawyer, even though it is optional. A Spanish tax number (NIE) and, usually, a Spanish bank account are needed before any of this can be signed before a notary.

Once you own the property, the costs do not stop. Owners pay an annual municipal property tax (IBI) and, where applicable, community fees for shared buildings or developments. Non-resident owners must also file an annual non-resident income tax return (Modelo 210), whether or not the property is let out, because rental income is taxed in Spain.

Day-to-day life in Spain often feels different in rhythm rather than in price alone: markets and local shops sit alongside supermarkets, public transport is generally extensive in cities and more limited in rural areas, and car ownership is common outside the main towns. None of this is uniform across the country, so it is worth spending time in an area before assuming it matches expectations formed elsewhere.

Healthcare is another area where planning matters. Options range from the public system, accessed differently depending on residency status, to private health insurance, which many non-resident owners choose for simplicity. If you intend to rent the property out to tourists, remember that tourist rentals need a regional licence, and many regions and buildings restrict or ban them altogether, which affects both your budget and your plans.

Spain and the United Kingdom have a double taxation agreement in place, which means rental income or gains from Spanish property should not be taxed twice, but how it is declared on both sides depends on your personal situation. A local tax adviser should confirm exactly how income or gains must be declared in Spain and reported to HMRC, since Modelo 210 and UK Self Assessment work on different rules and timings.

If you sell the property later as a non-resident, expect the 3% withholding mentioned above, plus a separate municipal capital-gains tax (plusvalía) based on the increase in the land's value. The Spanish Golden Visa for property investors ended on 3 April 2025 and is no longer available, so buying a home in Spain does not by itself grant any special residence route; the standard 90/180-day rule and visa requirements apply to UK citizens.

Because you will be paying in euros while earning and saving in sterling, it is worth treating currency as a cost in its own right. Exchange-rate movements between the moment you agree a price and the moment funds arrive in Spain, plus the conversion costs charged by banks or transfer providers, can change the real cost of a purchase or of ongoing payments such as community fees and taxes.

Spanish mortgages for non-residents exist, and our partner Colibrí Finances arranges them, but no lender guarantees approval and we never state a financing percentage; your own documents decide what is realistic. Before approaching a lender or opening a Spanish bank account, UK buyers are typically asked for a consistent paper trail of their income and finances.

Spain is a relatively short flight away from most UK airports, making regular visits to a Spanish property straightforward for owners based in Britain. Many British buyers are drawn to Spain for its climate, coastal lifestyle and established expatriate communities. One practical point to bear in mind is that Spanish inheritance law differs from UK rules, so it is worth taking specific advice on how it may affect the property and one's estate. Currency movements between sterling and the euro can also affect the overall cost of purchase and ongoing expenses.

Spain and the United Kingdom have a double taxation agreement in place, and a local tax adviser should confirm how rental income or gains from Spanish property must be declared and reported to HMRC.

As the United Kingdom is no longer an EU member state, British citizens may stay in Spain for up to 90 days in any 180-day period without a visa, and must apply for a visa or residence permit for longer stays.

Since the United Kingdom uses the pound sterling (GBP) rather than the euro, buyers should factor in exchange-rate movements and currency conversion costs when paying for a property or transferring funds to Spain.