The Spain–UK tax treaty and your Spanish property

What the convention covers

The convention applies to “persons who are residents of one or both Contracting States” (article 1). Residence, not nationality, is the entry ticket. It covers taxes on income and on capital. Article 2 lists, for Spain, personal income tax (IRPF), corporate tax, non-resident income tax (IRNR, Impuesto sobre la Renta de no Residentes), wealth tax (Impuesto sobre el Patrimonio) and local taxes on income and wealth; for the United Kingdom, income tax, corporation tax and capital gains tax. The purchase taxes (ITP, VAT, stamp duty on deeds), the annual property tax (IBI) and inheritance and gift tax are not in that list, so the treaty articles below do not decide them.

The BOE text shows the convention in force from 12 June 2014. The consolidated text carries a note that it may have been affected by the multilateral convention against base erosion (the “MLI”), and the UK government page, last updated on 28 April 2026, publishes a synthesised text combining the two. For a question that turns on a precise wording, read that synthesised document.

Article 4: which country is “your” country

Article 4 defines a resident as a person liable to tax in a state because of domicile, residence, place of management or a similar criterion. If an individual is resident of both countries under their domestic laws, article 4.2 applies a ladder of tests in this order:

1. the state where the person has a permanent home available; if there is one in both, the state of the closer personal and economic ties (the “centre of vital interests”);
2. if that cannot be fixed, or there is no permanent home in either, the state where the person habitually lives;
3. if the person lives habitually in both or neither, the state of nationality;
4. if the person is a national of both or neither, the tax authorities settle it by mutual agreement.

This matters for someone who spends several months a year in each country. Spanish domestic residence is explained in tax residency in Spain and the 183-day rule; the treaty then decides, for people caught by both systems, which state is treated as the residence state.

Article 6: rent from Spanish property

Article 6.1 says income that a resident of one state derives from immovable property in the other state “may be taxed in that other state”. Article 6.3 extends this to income from direct use, letting or any other form of use. So rent from a Spanish flat can be taxed by Spain. The treaty does not say how: that is left to the Spanish non-resident tax code, which taxes a non-resident’s gross rent at 24%, or 19% for residents of other EU or EEA states with effective information exchange, and lets only those EU/EEA residents deduct expenses (articles 24 and 25 of the IRNR law). A UK resident is outside that group. The consequences are set out in UK buyers in Spain after Brexit.

Article 13: gains on a sale

Article 13.1 allows the state where the property sits to tax the gain on its sale. Article 13.4 reaches shares, other than regularly traded ones, whose value comes more than 50% from immovable property in that state, and 13.5 reaches rights giving the use of such property. Spain applies 19% to a non-resident’s gain (article 25.1.f of the IRNR law), with 3% withheld by the buyer as a payment on account. The mechanics are explained in the national sale guides; this treaty article is the reason Spain is entitled to tax at all.

Article 21: the value of the property

Article 21.1 allows Spain to tax capital consisting of immovable property that a UK resident holds in Spain, and article 21.4 does the same for shares worth more than 50% property. This is the treaty basis for Spanish wealth tax on a UK resident’s Spanish home, covered in wealth tax for non-residents.

Article 22: relief for double tax

Because both states may tax, the convention requires relief. Under article 22.2, Spanish tax due on income or gains from a Spanish source “shall be allowed as a credit against” the UK tax computed on the same income or gains, in line with UK law on credit for foreign tax. Article 22.3 treats income that may be taxed in the other state under the convention as arising there. Claiming the credit is a matter for the UK return and for UK law, which this guide does not read; the UK government’s page on living in Spain points to the Spanish Tax Agency for questions on double taxation relief. For Spanish residents, article 22.1 gives the mirror credit for UK tax.

Other articles that matter to owners

• Article 24.1 bars each state from imposing on the other’s nationals a tax “more burdensome” than on its own nationals in the same circumstances, “in particular with respect to residence”. Article 24.5 adds that a state need not grant non-residents the personal allowances it gives its residents. Whether a given Spanish rule conflicts with these provisions is a legal question this guide does not answer.
• Article 25 provides a mutual agreement procedure for a person who considers that the two states’ measures lead to taxation not in line with the convention.

Which professional to consult

A tax adviser who files returns in both countries, or a lawyer registered with a Spanish bar association (colegio de abogados) with cross-border tax experience, can apply articles 4 and 22 to your facts. Payotte does not rank or recommend professionals; see property lawyers for how the trade is regulated.