British expat tax in Spain 2026 — AEAT-side: IRNR, Beckham Law and Modelo 720 explained

British nationals in Spain face a tax compliance challenge that increased sharply with Brexit. Non-resident property owners saw their IRNR rate rise from 19% to 24% and lost the ability to deduct rental expenses. Residents discovered their UK ISAs generate fully taxable Spanish IRPF income. The Beckham Law offers a six-year tax window at 24% — but only if the Modelo 149 is filed within the non-extendable six-month deadline. And the Modelo 720 creates Spanish disclosure obligations for UK bank accounts, ISAs, shares, and property above €50,000 per category. Most British nationals are managing one or two of these obligations — few have a complete picture of all four simultaneously.

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Why BM Consulting

Specialised advice and personal service

BMC is the AEAT-side specialist for British nationals in Spain: we manage IRNR (Modelo 210/211), Beckham Law applications (Modelo 149/151), Modelo 720 for UK assets, and annual IRPF for Spanish residents. We do not advise on UK pension management (QROPS, SIPP) — that requires FCA authorisation. We coordinate with your FCA-regulated UK adviser so both sides of your position are coherent.

  • Post-Brexit British non-residents pay IRNR at 24% (not 19%) on Spanish-source income, with no rental expense deductions — a direct result of the UK's third-country status from 1 January 2021.

  • The UK-Spain DTT (BOE-A-2014-3057, signed 2013, in force 2014) remains fully operative post-Brexit and is the key instrument for preventing double taxation between both countries.

  • The Beckham Law (Article 93 LIRPF, Ley 28/2022) gives British professionals relocating to Spain a 24% flat rate for 6 years — with foreign-source income (UK salary from remote work, ISA returns, UK dividends) fully exempt. Apply via Modelo 149 within 6 months.

  • ISAs have no Spanish tax-free recognition — dividends and gains inside UK ISAs are fully taxable in Spanish IRPF at savings rates (19-28%).

How we work

From first contact to case completion

  1. Tax status determination: IRNR vs IRPF vs Beckham

    We determine your Spanish tax position: non-resident IRNR taxpayer (if you spend fewer than 183 days in Spain and your centre of economic interests is outside Spain), standard IRPF resident (if Spanish tax resident without Beckham eligibility), or Beckham Law regime (if relocating for work, entrepreneurship or Digital Nomad Visa and within the 6-month application window).

  2. IRNR compliance: Modelo 210 and Modelo 211

    For non-resident property owners: annual Modelo 210 for imputed income (own-use property); quarterly Modelo 210 for rental income (24% on gross, no deductions). For property sales: management of the 3% Modelo 211 retention and the capital gain Modelo 210 within the 3-month filing window.

  3. Beckham Law application: Modelo 149

    We verify Beckham eligibility (no Spanish tax residency in the previous 5 fiscal years, qualifying reason for relocation) and file Modelo 149 within the six-month deadline. We then manage Modelo 151 (annual Beckham declaration) for the duration of the regime.

  4. Modelo 720: UK asset declaration

    We identify your UK assets subject to declaration (bank accounts, ISAs, shares, property), verify the €50,000 thresholds per category, prepare and file Modelo 720 by the 31 March deadline. We also advise on supplementary declarations for new assets or significant value increases.

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The problem

British nationals in Spain face a tax compliance challenge that increased sharply with Brexit. Non-resident property owners saw their IRNR rate rise from 19% to 24% and lost the ability to deduct rental expenses. Residents discovered their UK ISAs generate fully taxable Spanish IRPF income. The Beckham Law offers a six-year tax window at 24% — but only if the Modelo 149 is filed within the non-extendable six-month deadline. And the Modelo 720 creates Spanish disclosure obligations for UK bank accounts, ISAs, shares, and property above €50,000 per category. Most British nationals are managing one or two of these obligations — few have a complete picture of all four simultaneously.

Our solution

BMC is the AEAT-side specialist for British nationals in Spain: we manage IRNR (Modelo 210/211), Beckham Law applications (Modelo 149/151), Modelo 720 for UK assets, and annual IRPF for Spanish residents. We do not advise on UK pension management (QROPS, SIPP) — that requires FCA authorisation. We coordinate with your FCA-regulated UK adviser so both sides of your position are coherent.

Process

How we do it

1

Tax status determination: IRNR vs IRPF vs Beckham

We determine your Spanish tax position: non-resident IRNR taxpayer (if you spend fewer than 183 days in Spain and your centre of economic interests is outside Spain), standard IRPF resident (if Spanish tax resident without Beckham eligibility), or Beckham Law regime (if relocating for work, entrepreneurship or Digital Nomad Visa and within the 6-month application window).

2

IRNR compliance: Modelo 210 and Modelo 211

For non-resident property owners: annual Modelo 210 for imputed income (own-use property); quarterly Modelo 210 for rental income (24% on gross, no deductions). For property sales: management of the 3% Modelo 211 retention and the capital gain Modelo 210 within the 3-month filing window.

3

Beckham Law application: Modelo 149

We verify Beckham eligibility (no Spanish tax residency in the previous 5 fiscal years, qualifying reason for relocation) and file Modelo 149 within the six-month deadline. We then manage Modelo 151 (annual Beckham declaration) for the duration of the regime.

4

Modelo 720: UK asset declaration

We identify your UK assets subject to declaration (bank accounts, ISAs, shares, property), verify the €50,000 thresholds per category, prepare and file Modelo 720 by the 31 March deadline. We also advise on supplementary declarations for new assets or significant value increases.

5

Coordination with your UK FCA adviser

We provide your FCA-regulated UK adviser with the Spanish AEAT position — what income is taxed in Spain, what DTT articles apply, what credits the UK can give — to ensure your UK self-assessment or HMRC position is coherent with your Spanish IRPF or Beckham regime filing.

24%
IRNR rate for British non-resident property owners (third-country rate post-Brexit)
6 months
Non-extendable window to file Beckham Law Modelo 149
€50,000
Modelo 720 threshold per asset category (bank accounts, securities, property)
0%
Spanish tax on foreign-source income under Beckham Law

I moved from London to Madrid in early 2024 to work remotely for a UK tech company. BMC verified my Beckham Law eligibility in 48 hours, filed the Modelo 149 within the window, and explained exactly what my ISA and UK share portfolio mean for the Modelo 720. Having a clear picture of both sides of my tax position for the first time is genuinely transformative.

S.H. Senior Software Engineer, Relocated London to Madrid, February 2024

Download our guide

Guide: British Expat Tax Spain 2026 — IRNR, Beckham, ISAs and Modelo 720 (PDF)

For British nationals in Spain, tax compliance with the AEAT spans a wider range of obligations than almost any other nationality group. This reflects both the scale of the British community in Spain (300,000+ registered residents) and the particular complexity created by Brexit — which transformed British nationals from EU citizens with seamless integration into third-country nationals with materially different tax treatment.

Understanding the AEAT side of your position is essential whether you are a non-resident property owner paying IRNR, a new resident considering the Beckham Law, an established resident managing the Modelo 720, or a UK employer trying to understand what a British employee’s Spanish tax position means for payroll. This guide maps all four scenarios.

The Brexit tax shift: from 19% EU rate to 24% third-country rate

Before 31 December 2020, British nationals in Spain enjoyed the same IRNR tax treatment as any EU/EEA citizen. The key provisions of the EU-EEA treatment:

  • IRNR rate of 19% on Spanish-source income.
  • For rental income: deduction of qualifying expenses (maintenance, community fees, insurance, mortgage interest, depreciation) before applying the 19% rate — effectively taxing only net rental profit.
  • For property sales: 19% on the capital gain.

From 1 January 2021, British nationals became third-country nationals for Spanish tax purposes. The key changes:

  • IRNR rate of 24% on Spanish-source income (Articles 24 and 25 LIRNR).
  • For rental income: no expense deductions — the 24% applies to gross rental income, not net.
  • For property sales: 24% on the capital gain (compared to 19% for EU/EEA residents).

The difference is significant. A British national renting out a Costa del Sol apartment for €15,000 per year, with qualifying expenses of €4,000, paid the following:

  • Pre-Brexit (19% on net): (€15,000 - €4,000) × 19% = €2,090.
  • Post-Brexit (24% on gross): €15,000 × 24% = €3,600.

An annual increase of €1,510 purely from Brexit — with no change in the underlying economic position.

IRNR for British non-resident property owners

Modelo 210: imputed income on own-use or vacant property

Every British non-resident property owner in Spain must file Modelo 210 once per year to declare imputed income on properties used personally or left vacant. The imputed income base is:

  • 1.1% of the cadastral value, if the cadastral value was revised or updated within the last ten years.
  • 2% of the cadastral value, if not revised in the past ten years.

The imputed income is then taxed at 24%. Example: apartment in Alicante with cadastral value of €80,000, last revised in 2018 → €80,000 × 1.1% = €880 × 24% = €211.20/year. This is small in absolute terms but omitting it generates an unresolved AEAT compliance gap that compounds with interest and late penalties.

Filing deadline: the Modelo 210 for imputed income (devengo: 31 December) can be filed at any point in the following calendar year.

Modelo 210: rental income (quarterly)

For British non-residents who let their Spanish property, Modelo 210 must be filed quarterly:

  • Q1 (January-March rental): filed by 20 April.
  • Q2 (April-June): filed by 20 July.
  • Q3 (July-September): filed by 20 October.
  • Q4 (October-December): filed by 20 January of the following year.

Base: Gross rental income for the quarter, at 24%, with no deductions of any kind. No management fees, no repairs, no community charges, no insurance, no mortgage interest, no depreciation. Gross = base.

Modelo 211: the 3% retention on property sales

When a non-resident sells Spanish property, the buyer has a statutory duty to withhold 3% of the total sale price and pay it to the AEAT via Modelo 211 within one month of the deed. This retention is not an additional tax — it is a withholding payment on account of the seller’s capital gain tax obligation.

The seller then has three months from the deed to file their own Modelo 210 declaring the actual capital gain. The IRNR on the gain is 24% of the net gain (sale price minus the indexed acquisition cost). If the 3% retention exceeds the 24% tax on the gain, the seller can claim a refund.

The AEAT processes Modelo 210 refund claims within 6-12 months typically. BMC manages the full process: coordinating the Modelo 211 with the notary, calculating the optimal acquisition cost indexation, filing the Modelo 210 on time, and pursuing any refund.

The UK-Spain Double Tax Treaty: your protection against double taxation

The UK-Spain DTT (BOE-A-2014-3057) is the foundation of the bilateral tax relationship. Signed on 14 March 2013, it replaced the previous 1975 convention and introduced modern provisions aligned with the OECD Model Tax Convention. It remains fully in force post-Brexit — as an international treaty, it is independent of EU membership.

Most relevant provisions for British nationals

Article 13 — Capital gains: Gains from the sale of Spanish immovable property may be taxed in Spain regardless of the seller’s country of residence. This means the UK cannot prevent Spain from taxing the capital gain on a Spanish property sale, even if you are UK-resident.

Article 4 — Tax residency and tie-breaker: Where an individual could be tax-resident in both the UK and Spain, the DTT provides a cascade of tie-breaker criteria: (1) permanent home; (2) centre of vital interests; (3) habitual abode; (4) nationality; (5) mutual agreement between HMRC and AEAT. This cascade determines which country has primary taxing rights for dual-residency situations.

Articles 17-18 — Pensions: Private pensions are generally taxed in the residence state (Spain, if Spanish-resident). State pensions are also generally taxed in the residence state for non-government employees. UK State Pension received by a Spanish resident is typically taxed in Spain under the DTT.

What the DTT does NOT cover: UK Inheritance Tax (IHT) and Spanish Impuesto sobre Sucesiones y Donaciones (ISD). There is no UK-Spain inheritance and gift tax convention. This means both UK IHT (40% on worldwide estate of UK-domiciled individuals) and Spanish ISD can potentially apply to the same estate. The interaction is managed through unilateral credit relief and pre-death planning.

The Beckham Law: the six-year opportunity for new arrivals

Why the Beckham Law matters for British professionals

The single most impactful tax planning decision available to British nationals relocating to Spain is whether to apply for the Beckham Law within the six-month window. For a professional earning €150,000 in Spanish employment:

  • Standard IRPF (2026 Madrid rates): Effective rate approximately 43% → €64,500 tax.
  • Beckham Law: 24% flat → €36,000 tax.
  • Annual saving: approximately €28,500.

Compounded over six years, the total saving can be €150,000-200,000+ for a senior professional. For British tech workers, City of London professionals, consultants, and executives relocating to Madrid, Barcelona, or Marbella, this is a material consideration.

Qualifying categories under the reformed Ley 28/2022

The Ley 28/2022 de Startups (BOE-A-2022-21739) significantly broadened the Beckham Law’s scope:

  1. Employed workers — displaced by a Spanish company or a foreign company group member.
  2. Digital Nomads — remote workers for UK employers or clients, using the Digital Nomad Visa (DNV).
  3. Entrepreneurs — founders with the Spanish entrepreneur visa under Ley 14/2013.
  4. Highly qualified professionals — in startups or R&D/innovation entities (≥40% income from qualifying activities).
  5. Company directors — in Spanish entities where they hold less than 25% participation.

The six-month deadline: the most expensive missed deadline in Spanish tax law

The Modelo 149 must be filed within six months of Social Security registration (starting work). This is established in Article 116 of the IRPF Reglamento (RD 439/2007) and is absolutely non-extendable. If you miss it, you cannot access the Beckham regime for that relocation.

Common scenario that causes missed deadlines: arriving in Spain, starting work, delaying legal/tax advice, discovering the Beckham option after the window has closed. BMC tracks Beckham eligibility from the date of first client contact and flags the deadline prominently. The cost of missing it — forgoing 24% instead of up to 47% for six years — typically dwarfs the cost of professional fees by orders of magnitude.

Modelo 720 in practice: your UK assets under Spanish disclosure

The annual Modelo 720 (filed 1 January to 31 March for the previous year’s 31 December position) captures three categories of foreign assets:

Category 1 — Bank accounts: This includes all UK bank and building society current accounts, savings accounts, and Cash ISAs. Both the year-end balance and the Q4 average balance must be reported if either exceeds €50,000.

Category 2 — Securities and investment products: UK stock portfolios, ISAs (Stocks & Shares ISA, LISA, Innovative Finance ISA), mutual funds, OEICs, unit trusts. The total value of the portfolio at 31 December. Important: all types of ISA are included — the HMRC tax-free status of ISAs has zero relevance to the Modelo 720.

Category 3 — Immovable property: Properties in the UK, using the acquisition price or (for inherited properties) the inheritance deed value.

The CJEU reform: The original Modelo 720 penalty regime was ruled disproportionate by the Court of Justice of the EU in C-788/19 (January 2022). Spain subsequently amended the penalties — late filings without prior AEAT request now face proportionate fixed penalties rather than the previous confiscatory percentages. But the obligation to declare remains fully in force.

BMC advises on the Modelo 720 threshold calculations, prepares and files the declaration, and manages supplementary declarations where new UK assets are acquired or existing assets exceed the threshold for the first time.

BMC’s AEAT-side role: what we do and what we refer

What BMC handles (AEAT-side):

  • IRNR Modelo 210 (imputed income, rental income) — quarterly and annual.
  • IRNR Modelo 211 (3% retention coordination and refund).
  • Beckham Law Modelo 149 verification, filing, and annual Modelo 151.
  • Modelo 720 preparation and filing.
  • Annual IRPF for Spanish tax residents.
  • Modelo 030 (census registration).
  • AEAT inspections and regularisation of prior non-compliance.
  • Spanish company formation and IS compliance for British founders.
  • UK-Spain DTT advice and HMRC coordination letters.

What BMC refers (UK FCA-side — not our remit):

  • QROPS transfers from UK pension schemes.
  • SIPP drawdown strategy and fund management.
  • UK pension consolidation and lifetime allowance planning.
  • ISA portfolio management and investment strategy.

For FCA-regulated UK pension and wealth advice, we recommend the established market leaders serving British expatriates in Spain: Blevins Franks (50 years, offices across Spain), Blacktower Financial Management, and Chase de Vere International. Our standard model is: BMC handles your AEAT side, your FCA adviser handles your UK wealth side. We provide your FCA adviser with a clear summary of your Spanish tax position so they can align the UK planning accordingly.

This partnership model delivers coherent advice across both jurisdictions — without either adviser operating outside their regulated scope.

What comes next

FAQ

Frequently asked questions

A British national who owns property in Spain but is not a Spanish tax resident is an IRNR taxpayer. Post-Brexit (from 1 January 2021), the applicable rate is 24% — the third-country rate — not the 19% EU/EEA rate that applied before. Two scenarios: (1) Property used personally or vacant: imputed income is 1.1% of the cadastral value (if revised in the past 10 years; 2% if not) × 24%. Example: cadastral value €120,000 (revised) → €1,320 imputed income × 24% = €316.80/year. One annual Modelo 210 filing, between January-December of the following year. (2) Property let out: 24% on gross rental income, with NO expense deductions at all. Before Brexit, EU-resident property owners could deduct maintenance, community fees, insurance, and depreciation. British nationals post-Brexit cannot. If you are renting out a Spanish property and deducting expenses in your Modelo 210, this must be reviewed — you are likely filing incorrectly and may owe additional tax and interest.
The Beckham Law (régimen especial de impatriados, Article 93 of the Spanish Income Tax Act, substantially reformed by Ley 28/2022 de Startups, BOE-A-2022-21739) allows new Spanish tax residents to pay a flat 24% on Spanish-source income (up to €600,000; 47% above) for up to six years, with all foreign-source income exempt. Brexit does not affect eligibility — British nationals are treated identically to other foreign nationals for Beckham purposes. You are eligible if: (1) you have not been a Spanish tax resident in any of the five fiscal years preceding the year of first application; (2) you move to Spain for a qualifying reason: employment by a Spanish company; assignment from a UK group company; remote work for a UK employer via the Digital Nomad Visa (DNV); entrepreneurial activity via entrepreneur visa; highly qualified professional in innovation/R&D; company director in a non-majority-owned Spanish entity; (3) you file Modelo 149 within six months of Social Security registration. This deadline is absolute — missing it permanently closes the Beckham option for that relocation. For a British professional earning €200,000 in Spain, the Beckham Law saves approximately €46,000 per year versus standard IRPF.
ISAs have no Spanish tax-free recognition. The Individual Savings Account's HMRC exemption — which makes ISA returns completely tax-free in the UK — is not recognised by the AEAT. Spanish tax law treats income generated inside a UK ISA (whether Cash ISA, Stocks & Shares ISA, LISA, or Innovative Finance ISA) exactly like any other foreign investment income: dividends and interest are taxed as savings income (rendimientos del capital mobiliario) at 19-28%; capital gains are taxed as investment gains at 19-28% (up to 300,000 — 27% above that). The ISA 'wrapper' is invisible to Spain. The only exception: under the Beckham Law, all foreign-source income — including ISA returns — is exempt from Spanish taxation during the six-year period. BMC advises Beckham Law holders to review the timing of ISA withdrawals or asset realisations carefully, maximising foreign-source transactions during the Beckham period and planning for the post-Beckham period accordingly.
Yes, fully. The Double Taxation Convention between Spain and the United Kingdom (signed in London on 14 March 2013, published in the Spanish Official Gazette BOE-A-2014-3057, in force from 12 June 2014) is a bilateral international agreement that continues in full force regardless of Brexit. Key provisions: Article 4 (tie-breaker rules for dual residency: permanent home → centre of vital interests → habitual abode → nationality → mutual agreement); Article 6 (immovable property income: Spain may tax rental income from Spanish property); Article 13 (capital gains: Spain may tax gains from Spanish property); Article 17 (private pensions: generally taxed in the residence state); Article 18 (state pensions: generally taxed in the residence state for non-government employees — e.g., UK State Pension received by a Spanish resident is taxed in Spain, not the UK); Article 10 (dividends: maximum 15% withholding, or 5% if participation ≥10%). Crucially: the DTT does NOT cover inheritance and gift tax — there is no UK-Spain inheritance DTT, which creates planning complexity for estates spanning both countries.
The Modelo 720 (Informative Declaration on Assets and Rights Abroad, governed by Article 39(2) of the Spanish Income Tax Act and developed by Orden HAP/72/2013) is compulsory for Spanish tax residents with UK assets exceeding €50,000 per category as of 31 December. Three categories: (1) Bank and savings accounts at UK institutions: year-end balance and Q4 average balance. Includes current accounts, savings accounts, and Cash ISAs; (2) Securities, shares, investment funds, and similar: portfolio value. Includes Stocks & Shares ISAs, LISAs, investment ISAs, share portfolios, OEICs, and unit trusts. SIPPs and workplace pensions: the treatment is technically debated — BMC analyses case by case; (3) Immovable property in the UK: acquisition value or market value. Filing deadline: 1 January to 31 March of the following year (so assets as of 31 December 2025 are declared by 31 March 2026). The Modelo 720 is purely informational — it does not generate additional tax. The CJEU judgment C-788/19 (27 January 2022) reduced the disproportionate original penalty regime, but the declaration obligation remains fully intact.
When a Spanish property is sold by a non-resident (IRNR taxpayer), two tax events occur: (1) Modelo 211 — the buyer is legally required to withhold 3% of the total sale price and remit it to the AEAT within one month of the deed signing. This is a statutory obligation on the buyer; if they fail to do it, the AEAT can pursue the seller but also has secondary recourse to the property itself. The 3% retention is a payment on account of the seller's potential capital gain tax. (2) Modelo 210 (capital gain declaration) — the seller must file within three months of the deed, declaring the actual gain (sale price minus acquisition cost adjusted by applicable coefficients). The tax rate is 24% on the net gain. If the 3% retention exceeds the calculated tax, the seller can claim a refund from the AEAT (typically processed within 6-12 months). If the actual tax exceeds the retention, the seller must pay the difference. BMC manages both the Modelo 211 coordination with the buyer's notary and the Modelo 210 capital gain declaration and refund claim.
BMC's remit is the AEAT side of pension taxation — we advise on how Spanish law treats pension income you receive in Spain, and how the UK-Spain DTT allocates taxing rights. We do not advise on UK pension fund management, QROPS transfers, SIPP drawdown strategies, or pension consolidation — those require FCA authorisation that we do not hold. AEAT treatment under the DTT: UK State Pension (Article 18 DTT) — periodic payments from the State Pension are generally taxed in Spain (residence state) for private-sector recipients. The pension is taxed as foreign employment income in IRPF at progressive rates (or as foreign-source income exempt under Beckham if within the Beckham period). UK private/workplace pensions in drawdown — taxed in Spain as employment income under IRPF. UK lump-sum pension payments — more complex allocation under Article 18; the DTT may allow the UK to tax lump sums from certain pension arrangements. Under the Beckham Law, foreign pension income IS treated as foreign-source income and is therefore EXEMPT — meaning a British professional under Beckham who receives pension income does not pay Spanish IRPF on it during the six-year period. For full UK pension guidance for Spain residents, Blevins Franks, Blacktower Financial Management, and Chase de Vere International are the leading FCA-regulated specialists.

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Frequently asked questions

Questions about British Expat Tax Spain AEAT 2026: IRNR, Beckham, Modelo 720 | BMC

A British national who owns property in Spain but is not a Spanish tax resident is an IRNR taxpayer. Post-Brexit (from 1 January 2021), the applicable rate is 24% — the third-country rate — not the 19% EU/EEA rate that applied before. Two scenarios: (1) Property used personally or vacant: imputed income is 1.1% of the cadastral value (if revised in the past 10 years; 2% if not) × 24%. Example: cadastral value €120,000 (revised) → €1,320 imputed income × 24% = €316.80/year. One annual Modelo 210 filing, between January-December of the following year. (2) Property let out: 24% on gross rental income, with NO expense deductions at all. Before Brexit, EU-resident property owners could deduct maintenance, community fees, insurance, and depreciation. British nationals post-Brexit cannot. If you are renting out a Spanish property and deducting expenses in your Modelo 210, this must be reviewed — you are likely filing incorrectly and may owe additional tax and interest.
The Beckham Law (régimen especial de impatriados, Article 93 of the Spanish Income Tax Act, substantially reformed by Ley 28/2022 de Startups, BOE-A-2022-21739) allows new Spanish tax residents to pay a flat 24% on Spanish-source income (up to €600,000; 47% above) for up to six years, with all foreign-source income exempt. Brexit does not affect eligibility — British nationals are treated identically to other foreign nationals for Beckham purposes. You are eligible if: (1) you have not been a Spanish tax resident in any of the five fiscal years preceding the year of first application; (2) you move to Spain for a qualifying reason: employment by a Spanish company; assignment from a UK group company; remote work for a UK employer via the Digital Nomad Visa (DNV); entrepreneurial activity via entrepreneur visa; highly qualified professional in innovation/R&D; company director in a non-majority-owned Spanish entity; (3) you file Modelo 149 within six months of Social Security registration. This deadline is absolute — missing it permanently closes the Beckham option for that relocation. For a British professional earning €200,000 in Spain, the Beckham Law saves approximately €46,000 per year versus standard IRPF.
ISAs have no Spanish tax-free recognition. The Individual Savings Account's HMRC exemption — which makes ISA returns completely tax-free in the UK — is not recognised by the AEAT. Spanish tax law treats income generated inside a UK ISA (whether Cash ISA, Stocks & Shares ISA, LISA, or Innovative Finance ISA) exactly like any other foreign investment income: dividends and interest are taxed as savings income (rendimientos del capital mobiliario) at 19-28%; capital gains are taxed as investment gains at 19-28% (up to 300,000 — 27% above that). The ISA 'wrapper' is invisible to Spain. The only exception: under the Beckham Law, all foreign-source income — including ISA returns — is exempt from Spanish taxation during the six-year period. BMC advises Beckham Law holders to review the timing of ISA withdrawals or asset realisations carefully, maximising foreign-source transactions during the Beckham period and planning for the post-Beckham period accordingly.
Yes, fully. The Double Taxation Convention between Spain and the United Kingdom (signed in London on 14 March 2013, published in the Spanish Official Gazette BOE-A-2014-3057, in force from 12 June 2014) is a bilateral international agreement that continues in full force regardless of Brexit. Key provisions: Article 4 (tie-breaker rules for dual residency: permanent home → centre of vital interests → habitual abode → nationality → mutual agreement); Article 6 (immovable property income: Spain may tax rental income from Spanish property); Article 13 (capital gains: Spain may tax gains from Spanish property); Article 17 (private pensions: generally taxed in the residence state); Article 18 (state pensions: generally taxed in the residence state for non-government employees — e.g., UK State Pension received by a Spanish resident is taxed in Spain, not the UK); Article 10 (dividends: maximum 15% withholding, or 5% if participation ≥10%). Crucially: the DTT does NOT cover inheritance and gift tax — there is no UK-Spain inheritance DTT, which creates planning complexity for estates spanning both countries.
The Modelo 720 (Informative Declaration on Assets and Rights Abroad, governed by Article 39(2) of the Spanish Income Tax Act and developed by Orden HAP/72/2013) is compulsory for Spanish tax residents with UK assets exceeding €50,000 per category as of 31 December. Three categories: (1) Bank and savings accounts at UK institutions: year-end balance and Q4 average balance. Includes current accounts, savings accounts, and Cash ISAs; (2) Securities, shares, investment funds, and similar: portfolio value. Includes Stocks & Shares ISAs, LISAs, investment ISAs, share portfolios, OEICs, and unit trusts. SIPPs and workplace pensions: the treatment is technically debated — BMC analyses case by case; (3) Immovable property in the UK: acquisition value or market value. Filing deadline: 1 January to 31 March of the following year (so assets as of 31 December 2025 are declared by 31 March 2026). The Modelo 720 is purely informational — it does not generate additional tax. The CJEU judgment C-788/19 (27 January 2022) reduced the disproportionate original penalty regime, but the declaration obligation remains fully intact.
When a Spanish property is sold by a non-resident (IRNR taxpayer), two tax events occur: (1) Modelo 211 — the buyer is legally required to withhold 3% of the total sale price and remit it to the AEAT within one month of the deed signing. This is a statutory obligation on the buyer; if they fail to do it, the AEAT can pursue the seller but also has secondary recourse to the property itself. The 3% retention is a payment on account of the seller's potential capital gain tax. (2) Modelo 210 (capital gain declaration) — the seller must file within three months of the deed, declaring the actual gain (sale price minus acquisition cost adjusted by applicable coefficients). The tax rate is 24% on the net gain. If the 3% retention exceeds the calculated tax, the seller can claim a refund from the AEAT (typically processed within 6-12 months). If the actual tax exceeds the retention, the seller must pay the difference. BMC manages both the Modelo 211 coordination with the buyer's notary and the Modelo 210 capital gain declaration and refund claim.
BMC's remit is the AEAT side of pension taxation — we advise on how Spanish law treats pension income you receive in Spain, and how the UK-Spain DTT allocates taxing rights. We do not advise on UK pension fund management, QROPS transfers, SIPP drawdown strategies, or pension consolidation — those require FCA authorisation that we do not hold. AEAT treatment under the DTT: UK State Pension (Article 18 DTT) — periodic payments from the State Pension are generally taxed in Spain (residence state) for private-sector recipients. The pension is taxed as foreign employment income in IRPF at progressive rates (or as foreign-source income exempt under Beckham if within the Beckham period). UK private/workplace pensions in drawdown — taxed in Spain as employment income under IRPF. UK lump-sum pension payments — more complex allocation under Article 18; the DTT may allow the UK to tax lump sums from certain pension arrangements. Under the Beckham Law, foreign pension income IS treated as foreign-source income and is therefore EXEMPT — meaning a British professional under Beckham who receives pension income does not pay Spanish IRPF on it during the six-year period. For full UK pension guidance for Spain residents, Blevins Franks, Blacktower Financial Management, and Chase de Vere International are the leading FCA-regulated specialists.
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