Britons looking to retire or relocate to Spain are facing a double whammy of extra taxes and the end of the country’s popular Golden Visa scheme.
Spain has long-been a popular destination for expats looking to retire abroad and escape the high inflation of the UK, while many younger people may relocate for warmer weather and better quality of life.
However, the Congress of Deputies in Spain voted to end the Golden Visa programme last year and applications will no longer be taken after April 2025.
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Meanwhile, Spanish Prime Minister Pedro Sanchez announced plans yesterday to impose a tax of up to 100% on properties purchased by non-EU residents.
This could hit British pensioners looking to retire in Spain or just those hoping to relocate or rent a holiday home on its sunny shores.
Jeremy Savory, chief executive of wealth mobility firm Savory and Partners, said: “It points to a wider European trend of deterring foreign investment through cancelling or increasing prices of Golden Visa programmes or increasing taxes.
“These measures are aimed at making property more affordable and is an appealing narrative to the electorate. But the affordability issue is more about lack of housing supply caused by over regulation and failures at local and national government level.
“Meanwhile mass legal and illegal immigration continues unabated and consumes supply at greater volumes at the income thresholds most affected by rising housing cost.”
Here is how Spain’s visa and property tax clampdown could affect you.
What is happening with Spain’s Golden Visa?
Launched in 2013, Spain’s Golden Visa granted residency to investors such as Brits who put €500,000 or more into Spanish property with minimal stay requirements.
But this has created concerns that local residents are being priced out of the housing market, which has led to the scheme being scrapped.
Any new applications must now be in by 3 April 2025 but the government has confirmed that existing visas can still be renewed.
Sean Woolley, director of real estate agency Cloud Nine Spain, says anyone hoping to get the Golden Visa will need to act fast as you will typically need six to eight weeks from choosing the property and making an offer to completing on the sale.
“This means that you need to aim to find the property and put an offer in this month,” says Woolley.
“This news is certainly encouraging anyone who has been considering this visa to get moving and accelerate their search. Since the announcement we’ve been inundated with fresh enquiries.
“January is typically a quiet month, which takes time to get moving, but we’ve already seen a 20-30% uplift in leads in January.”
Isobel Neilson, director of global immigration advisers Fragomen says the closing of the scheme will be a “huge blow” for retirees from the UK looking to move to Spain.
She says: “They will now have to look to other passive routes to obtain residency such as the non-lucrative visa – this is unfortunately less flexible, does not allow the applicant to work even remotely in Spain and requires full time residency of six months a year to maintain the status.”
How is property tax changing in Spain?
Even if you weren’t worried about residency, owning a holiday home in Spain could get more expensive if plans to add a 100% tax to purchases by non-EU buyers are approved.
International property buyers currently pay a tax rate ranging from 10% to 12%.
This is another attempt to ensure locals aren’t locked out of the property market and comes amid major protests against over-tourism in cities such as Barcelona.
Seila Sanches Lucas, a UK and Spanish qualified lawyer at international law firm Broadfield, says: “It is just a proposal at this point in time and is not guaranteed to make it onto the Spanish statute books.
“It would be interesting to know whether this proposal would extend to the entire country or to particularly regions.
“UK nationals who have already retired and living in Spain will also want to know whether this tax could be levied retrospectively.”
Is it worth retiring or relocating to Spain?
Spain may offer warm weather but it may not be as attractive if taxes aren’t as welcoming.
Scott Gallacher, director at advisory firm Rowley Turton, suggests a 100% tax on property bought by non-residents would crush Spain’s retirement appeal for Brits overnight.
He says: “It’s not just the cost—it’s the competition. France, Portugal, and Florida all offer sunshine and, with such a tax, far better comparative value. Spain risks pricing itself out and losing the British retirees who drive local economies. This policy doesn’t shift the dial—it snaps it.”
William Cooper, marketing director at expat insurance brand William Russell, says reduced investment in Spanish property could also impact holidaymakers and digital nomads indirectly.
“Fewer holiday homes available for rent might limit accommodation options for tourists, and if current property owners sell off their homes, it could drive up prices for the rentals that remain,” he says.
“If Spain’s Golden Visa program ends in January 2025, it could have significant economic consequences. Even though tourism reached record highs in July 2024, a drop in foreign investment – especially in the real estate sector could trigger far-reaching effects, including implications for British retirees who play a key role in contributing to local economies through steady, long-term spending.”
It will be great news for the likes of Portugal, Italy and Greece, says Tony Redondo of Cosmos Currency Exchange.
“This change, along with the scrapping of the Golden Visa in April, will make Spain far less attractive for non-EU buyers seeking residency through property investment,” he says.
“Prospective expats must factor in increased costs and navigate more complex residency processes, as alternative visa options like the non-lucrative visa require proof of sufficient income. High-value property demand should drop.”
It comes as many wealthy individuals have been looking to alternatives to living in the UK before the non-dom tax regime is also scrapped in April 2025.
Sean Cockburn, director at Forvis Mazars, says: “Popular possible destinations include Spain, Portugal, Italy and further afield but Spain’s recent proposal to apply 100% tax on residential purchases by non-EU residents will concern those looking to acquire property there.
“With other jurisdictions continuing to offer beneficial tax regimes for wealthy individuals, we might see a lower take-up on Spanish language courses this year.”
Sanches Lucas highlights that the Spanish Prime Minister is politically vulnerable and this may simply be a pre-election soundbite to boost his popularity, adding: “Even if adopted, the legislative process in Spain is tortiously slow and it is perhaps a little early for UK nationals to worry about this proposal.”
The end of the Golden Visa is not necessarily the end of non-EU citizens living in Spain though, as there are several other alternatives.
Woolley adds: “You can be in Spain 90 days out of every 180 days, just on a tourist visa. Or if you want to make the permanent move, you can choose between the lucrative and the non-lucrative visa options or even the digital nomad visa if you are working remotely for a company outside of Spain.”
