Do UK citizens pay the EU or non-EU tax rate after Brexit?

The non-EU rate of 24% — unambiguously. Since 1 January 2021, British nationals are classified as third-country nationals for Spanish IRNR purposes, without exception and without grandfathering. What matters is tax residency, not nationality. A German national tax-resident in Switzerland is treated as a third-country national; a British national tax-resident in Germany is treated as an EU resident. These rates apply to ongoing income — self-use and rental. Capital gains on property sales are subject to different rules. This is a common misconception among British property owners. Many assume that the EU rate of 19% continues to apply to properties purchased before Brexit. It does not. The applicable tax rate is determined by the owner's nationality at the time of filing — not the date the property was acquired. The practical impact is considerable, particularly for rental income. An EU citizen with €20,000 in rental receipts and €8,000 in deductible expenses pays 19% on €12,000 = €2,280. A British owner with identical income and costs pays, under current legislation, 24% on €20,000 (gross, no expense deduction) = €4,800 — more than double. The Audiencia Nacional ruled on 28 July 2025 (SAN 3630/2025) that this exclusion from the expense deduction violates the EU free movement of capital (Article 63 TFEU). The ruling is not yet final and the Spanish Tax Agency continues to apply current legislation pending the Supreme Court's decision. The ruling is not yet final and the Spanish Tax Agency continues to apply current legislation pending the Supreme Court's decision. Individual advice from an Asesor Fiscal is recommended. For imputed income (self-use or vacancy), the difference is smaller but still present: 24% instead of 19% on the same imputed amount. On a cadastral value of €200,000 with the 1.1% imputation rate, this means €528 instead of €418 — a difference of €110 per year.