British and American buyers in Menorca: military permit, length of stay and taxes
They can buy, but as non-EU citizens three specific rules apply: a military permit to buy on the islands (except in the urban areas the regulation excludes), a limit of 90 days' stay in any 180-day period and, if they live outside the EU, a 24% non-resident income tax rate instead of the 19% paid by EU residents.
1. Military permit
Since Brexit, British nationals no longer benefit from the exemption that Law 8/1975 reserves for nationals of EU Member States (additional provision). Like Americans, they need military authorisation to acquire property in restricted-access zones, and the regulation includes all the islands in those zones (Real Decreto 689/1978, art. 32.1.a).
The key exception is urban land: “the current urban centres of non-border towns or their current developed or expansion areas” are excluded, as are future ones included in plans that received a favourable report from the Ministry of Defence (art. 35.1). The town hall states this in the planning certificate for the plot (art. 35.4). If the permit is required, the notary and the land registrar will ask for it before the deed and the registration (Ley 8/1975, art. 20).
We quote each article in full in Buying a new-build villa in Menorca as a foreigner.
2. Stays: 90 days in any 180-day period
Owning a property does not give the right to live in Spain. The Schengen Borders Code sets the entry conditions for third-country nationals for intended stays of no more than 90 days in any 180-day period, counting the 180 days preceding each day of stay (Regulation (EU) 2016/399, art. 6.1). Longer stays require a visa or a residence permit.
3. The golden visa no longer exists
Until 2025, a significant property investment allowed investors to apply for a residence visa (the so-called golden visa). Organic Law 1/2025 left article 63 of Ley 14/2013 without content, with effect from 3 April 2025. According to the Spanish Government, applications filed before that date are processed under the previous rules.
4. Non-resident income tax: 24%
The non-resident income tax rate depends on the country of residence, not on nationality:
“a) As a general rule, 24 per cent. However, the tax rate shall be 19 per cent in the case of taxpayers resident in another Member State of the European Union or of the European Economic Area with which there is an effective exchange of tax information […].”IRNR Act, art. 25.1.a)
The United Kingdom and the United States are neither EU nor European Economic Area states, so their residents pay 24%, both on the imputed income from own use and on rental income. We explain how each is calculated in Taxes when buying a new home in Menorca.
What about the 100% tax?
It has not been approved. It is a bill that, as of 5 October 2026, is still pending in Congress, and as drafted it would not tax the purchase of a new home from a development company. We explain it in Is there a 100% tax on foreigners buying property in Spain?
Sources
- Ley 8/1975, de zonas e instalaciones de interés para la Defensa Nacional (BOE) — arts. 18 and 20, additional provision
- Real Decreto 689/1978, regulation implementing Ley 8/1975 (BOE) — arts. 32, 35 and 37
- Regulation (EU) 2016/399, Schengen Borders Code (EUR-Lex) — art. 6.1
- Ley 14/2013 (BOE): art. 63, without content since 3 April 2025
- La Moncloa (Spanish Government): end of golden visas from 3 April
- Real Decreto Legislativo 5/2004, Ley del Impuesto sobre la Renta de no Residentes (BOE) — art. 25.1.a)
Informative article, written on the basis of the regulations in force on the review date. It does not replace advice from a lawyer or tax adviser on your specific case. Quotations from Spanish legislation are unofficial translations: only the Spanish text published in the official gazettes is authentic.
