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SHOPPING

EXPLAINED: How British and other non-EU tourists can profit from tax-free shopping in Spain

British tourists travelling to Spain - when it has been possible - have been able to make the most of tax-free shopping since the UK formally left the EU at the beginning of 2021.

jewellery store in spain, vat tax refund for non-eu tourists
VAT refunds in Spain apply to apply to fashion items, cosmetics, jewellery, technology and some food and drink items.

There are a lot of changes to be aware of since the UK left the EU, covering everything from passports to Bovril, pets to phones, but there is one benefit to UK tourists in Spain.

Residents of England, Wales and Scotland can make the most of Tax Free Shopping in Spain and the rest of the EU – which means that they can save up to 21 percent of the cost of certain goods by claiming back VAT on their purchases.

It does not apply to services– you can’t get VAT back on your restaurant bills, car rental, theatre tickets, flights or train tickets. 

But it does apply to fashion items, cosmetics, jewellery, technology and some food and drink items. 

In 2018, the Spanish government removed the minimum spending amount of €90.16 that previously applied to Tax Free Shopping transactions made in Spain, a limit that still exists in most EU nations. 

In other words, whatever the value of the goods you purchase, you have the right to claim back the VAT (IVA in Spanish). 

Since January 2019, all retailers within the European Union including Spain’s are legally obliged to assist non-EU customers such as British, Chinese or American tourists in the process of claiming their VAT paid on purchases while visiting.

At the time of purchase, ask the retailer for a VAT refund form, which must be signed by both the retailer and you. If they don’t speak English, ask them for el formulario DIVA (the Spanish government’s tax-free form).

However if this is not on offer, non-EU residents can claim back VAT later, just make sure you keep the full receipt. 

Small retailers in Spain sometimes don’t have the time or resources to carry out the tax-free process, some even prefer to offer a discount to avoid the paperwork.

Whatever paperwork you have, make sure you go to the airport early with your purchased goods, passport and boarding pass to get your documents stamped by customs before your flight. 

Some Spanish airports also have machines which allow you to carry out the process yourself, although for this you will need the DIVA form. 

Once your form has been stamped you send it back to the retailer to claim your refund.

Alternatively, Global Blue also has refund offices in the following locations across Spain:

Algeciras, Alicante Airport, Andorra La Vella, Barcelona Airport, Downtown Barcelona, Benidorm Downtown, Ibiza Airport, Lloret de Mar, Mallorca Outlet, Madrid Downtown, Madrid Airport, Malaga Airport, Malaga Downtown, Marbella, Palma de Mallorca, Sevilla, Tarifa- Cádiz, Valencia Downtown and Viladecans Downtown.

Using a tax-free company will cost you some commission but it will make the process go smoother.

And there are also a number of apps that can make the process easier still, including Global Blue and another company called Zapptax, which also take scanned forms and inform the retailer. 

Deducting VAT from good purchased in the Canary Islands isn’t possible as the archipelago has its own system called IGIC.

woman shopping in spain
Whatever the value of the goods you purchase, you have the right to claim back the VAT. Photo: Arturo Rey/Pixabay

More specific information for British tourists in Spain

Now that the UK has left the EU, British tourists and visitors aged 16 and over, who have been in Spain for less than six months, are eligible to shop tax free in the EU, provided they:

  • Live in England, Scotland or Wales, and can prove it by showing their stamped UK passport (UK nationals who are resident in the EU present residency documents when entering, only tourists should get a stamp in their passport on entry and exit)
  • Meet the minimum spend criteria of the country in which the purchase is made; Spain doesn’t have a minimum amount anymore
  • Take the goods out of the EU (aka ‘back home’) within three months of purchase.
  • The goods should be for personal use or a gift

When you leave Spain to return to the UK, present your purchases and the form to customs for approval. It is important to note that items on which you are claiming a refund must be unused and in their original packaging.

Officials will stamp and return the two sheets of your VAT refund form to you. 

If you leave the EU by train – Get your VAT refund forms stamped by customs officials, either during your journey or at the border crossing station (at the EU exit point). 

If you leave the EU aboard ship or by road – You must have your VAT refund forms stamped by the customs office at the final port or road exit point in the European Union.

If you leave the EU from another Member State than Spain– After an inspection, the customs office of the final Member State you visit before you return to the UK will stamp and return your forms.

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GIBRALTAR

UK soldiers expelled from Spain after crossing from Gibraltar posing as tourists

Spain has expelled four Royal Navy servicemen who crossed the Spain-Gibraltar border on foot three times in a single day while dressed in civilian clothing, with Spanish media claiming they were checking the porosity of the border.

UK soldiers expelled from Spain after crossing from Gibraltar posing as tourists

Spanish police expelled four British soldiers from Spain on Monday night, removing them from the country and sending them back to Gibraltar after it emerged that the four Royal Navy personnel had entered Spain illegally while “posing as tourists”, as the Spanish press has reported.

The incident comes a week after the British Navy carried out military drills in the waters surrounding Gibraltar, the British overseas territory that Spain still claims sovereignty of, and amid the seemingly never-ending negotiations between Spain and the UK to finally settle a post-Brexit deal.

READ ALSO: Gibraltar Brexit deal ‘close’ as Brits crossing into Spain use fake bookings

The expulsions, now reported in the Spanish press by Europa Sur and confirmed to El Periódico de España by official sources, occurred after the four soldiers arrived in Gibraltar on a civilian flight and entered into Spain. They also had return tickets via Gibraltar.

They then reportedly passed themselves off as tourists and entered Spain on foot, staying at a four-star hotel in La Línea de la Concepción, the town in the Cádiz province of Andalusia that borders Gibraltar.

Stranger yet is that they crossed the border at La Línea on up to three occasions in the space of a few hours.

READ ALSO: What Brits need to know before crossing the border from Gibraltar to Spain

Spanish authorities detected their presence because two of the soldiers tried to return to Gibraltar at night.

At the border, Spanish police officers enquired as to the reason for their entry, to which the soldiers replied that they were on their way to work and brandished British military documentation.

The police decided that their entry into Spain had been irregular because they did not meet the Schengen Borders Code requirements demanded of non-EU citizens entering EU territory.

According to Europa Sur, Spanish police then asked the two soldiers to call their colleagues in the hotel in order to collect their luggage and return to Gibraltar, which took place at midnight on Monday 18th March.

The Spanish press has stated that it is common for soldiers to try to stay in Spanish territory by concealing their military status and entering while posing as tourists.

The motive for the soldiers’ presence, particularly their repeated trips across the border, remains unknown.

The military drills in the area seem to suggest that the soldiers may have taken part in or be due to take part in further exercises and wanted to enter as tourists.

Spanish media also suggests that they could have been testing the porosity of the border, though these claims remain unsubstantiated.

Gibraltar’s post-Brexit status still remains unresolved. The EU and UK government are now onto their 18th round of treaty negotiations after the framework agreement between London and Madrid made on New Year’s Eve 2020 essentially ‘fudged’ the border issue, leaving Gibraltar’s status within the Schengen area undefined.

Spain’s Foreign Minister José Manuel Albares said in late-2023 that “we are very, very close” to finalising a Brexit agreement.

“I would sign a deal with Britain over Gibraltar tomorrow,” Albares told journalists at the time. Yet no agreement was made, despite the Minister’s positivity, nor the appointment of former UK Prime Minister David Cameron as Foreign Secretary.

Albares’ comments came at a time when it was reported in the Spanish press that many UK nationals have been using fake hotel bookings in order to try and bypass the Schengen rules and trick their way through border checks.

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