If you're a British expat with property in Spain, equity release can be a way to unlock the value of your home while continuing to enjoy your retirement. Whether you're looking for additional income, tax-efficient planning, or long-term care support, there are several options — but each comes with different implications.
Here are the main equity release routes available in Spain:
- Bare Property Ownership (Nuda Propiedad): You sell the ownership of your property but retain the right to live in it for life (known as usufruct). You receive a lump sum upfront, and the buyer takes full possession only after your death or when you move out permanently.
- Life Annuity (Renta Vitalicia): You transfer ownership of your home in exchange for a guaranteed monthly income for life, plus the right to remain in the property. It's often used for stable retirement income and may come with tax advantages under Spanish law.
- Buy-to-Let: Rather than selling or borrowing, some expats choose to rent out their Spanish property to generate income. This keeps ownership intact but comes with responsibilities like property management and tax compliance.
- Lifetime Loans (Préstamo Hipotecario Inverso): You borrow money using your home as collateral while retaining ownership and residence. The loan is usually repaid from the sale of the property after death. These are still relatively rare in Spain.
Tip: Always consult an independent legal adviser who understands both Spanish and UK law before proceeding. This ensures you choose the right strategy and protect your long-term interests.
