Moving from rainy England to sun-bathed Spain tempts with its weather, tapas culture and lower cost of living. After Brexit, however, it is not a spontaneous one-backpacking trip, but a logistical and legal project, the heart of which remains the question: is it better to rent or buy your own place straight away at the start? Below you will find a guide that takes you from the initial paperwork to the key figures of the property market in 2025.
1. Documents after Brexit: from visa to NIE number
Britons are now third-country nationals for Spain. To settle permanently, you first need the right residence visa. The most popular pathways are:
- Non-Lucrative Visa (NLV) – for those living on savings, pensions or rent abroad; requires private health insurance and approximately €30,000 annual passive income.
- Digital Nomad Visa – introduced in 2023 for remote workers; all that is needed is a contract with a company outside Spain and an annual income equivalent to 200% of the Spanish minimum wage (≈ €30,000).
- Golden Visa for property purchases of €500,000 or more is no longer an option – the government has announced that the scheme will be abolished in 2025.
Once you have obtained your visa from the consulate in London or Manchester, you will obtain your TIE residence card and, above all, your NIE (Número de Identidad de Extranjero) – the identification number you need to rent, buy, sign electricity contracts or open a bank account. In practice, it can be obtained from any police office in Spain or from the Spanish consulate before departure; the sooner the better, as waiting times in high season can exceed a month. The next step is to register at the town hall, which confirms the address and is necessary for registration in the public health service.
2. Why do most expats start by renting after moving to Spain?
- Flexibility and time to look around – these are the two main reasons. Spain is a country of great contrasts: Barcelona and Madrid resemble London in pace and price, while an Andalusian pueblo offers a house with a terrace for a fraction of that amount. By renting for a year, you have the opportunity to see where you really want to live, without the risk of making a costly mistake when buying.
- In 2025, rents are rising faster than purchase prices. Across the country, average rental rates have jumped by 15% year-on-year; in Madrid they have already reached €20.5 per m² per month, and on the holiday coast the weekly cost of a flat for the summer has risen by another 6-7%, or around €110. The statutory deposit is one monthly instalment, but landlords often ask for two plus agent’s commission (another month).
- It is worth knowing that, as of 2023, the Housing Act is in force, which has introduced ceilings on rent increases and a new update rate – less dependent on inflation. For the tenant, this means predictability, for the landlord – a little less freedom, which in turn inhibits the supply of classic long-term units.
3. When does it make sense to buy a flat?
If you plan to stay for at least five years, work or run a business in Spain and have a minimum 30 per cent equity contribution, buying is starting to compete with renting. According to the Idealista portal, the average price per square metre was at the beginning of 2025. €2,237 and is increasing by an additional 4-5 % per year due to a shortage of supply. The main centres – Madrid, Barcelona, the Balearic Islands and the Costa del Sol – are definitely more expensive, but already in the cities of the interior (Murcia, León, Zamora) you will buy a flat for half this amount.
On the cost side, you must add:
- ITP tax 6-10 % of the value with secondary market or 10 % VAT with new premises.
- Notary and registration fee – 1-2 %.
- Gestor and certified translations – approx. 1 % or lump sum.
The total price in the deed may therefore increase by 10-14 % relative to the amount shown in the advertisement.
4. Financing after a move from England to Spain: mortgage for a resident and for a foreigner
Spanish banks will grant a loan to a foreigner for up to 70% of the value of the property. Residents (TIE holders) can expect an interest rate of between 2.5% and 3.9%, while non-residents usually get a rate above 3.5% with a variable EURIBOR and a maximum 25-year repayment period. The bank requires a credit history in the UK, bank statements and a certificate of income – all documents translated into Spanish and provided with an apostille.
5. Tax obligations of the owner in Spain
If you have become a tax resident of Spain (residing here > 183 days a year), you declare global income to the local tax office and pay progressive PIT. The owner of the property also pays the annual IBI property tax and – on sale – capital gains tax and the so-called plusvalía municipal (on the increase in value of the land). A non-resident must additionally account for the ‘notional income’ from owning the house, even if he or she does not rent it out. Remember also the controversial obligation to declare foreign assets – penalties for failure to declare are high.
6 Step-by-step moving strategy
- Secure residence status – visa + TIE.
- Apply for an NIE even before arrival or in the first week after landing.
- Rent a flat for 6-12 months to get an idea of neighbourhoods and market rates.
- When you move from England to Spain, open a bank account and collect a history of receipts – it will be useful for your mortgage.
- If Spain ‘becomes’ your home after a year, start the buying process: find an independent lawyer, order a property status report, reserve funds for transaction taxes.
- Before signing the deed, ask for the latest IBI bill and a certificate of no arrears in the community – this protects you from unexpected debts.
7. Moving from England to Spain
Spain in 2025 is a market where rents are rising faster than purchase prices, but the total cost of getting into owning your own home remains high due to taxes and the deposit. That’s why most fresh expats from England opt for the ‘rent first’ model – it allows you to take it easy on the bureaucracy, test out different cities and build your creditworthiness in euros. However, if you plan to stay for at least five years and have a solid financial cushion, the purchase can act as a hedge against further price rises and serve as a base for a possible tourist rental in the future.
Whatever your decision, remember that the key to a stress-free move lies in chronology: first legal residency and an NIE number, then a roof over your head, and only finally putting down roots in the Spanish banking and tax system. With this order, even the most complicated Spanish renovation will become just another sunny challenge – not a financial storm.
