Brexit's 90-Day Rule: Why Fractional Ownership Is The Perfect Solution For British Second Home Owners

The United Kingdom’s exit from the European Union has fundamentally reshaped property ownership for British citizens across the continent. The most significant change is the strict 90/180-day rule: British property owners are now limited to a maximum stay of 90 days within any rolling 180-day period across the entire Schengen Area. This means that if you own a holiday villa on the Costa del Sol in Spain or an apartment in the South of France, you can only use it for half the year at most—and then only if you carefully plan your visits.

Since Brexit ended in 2021, immigration enforcement has tightened dramatically. Between 2021 and March 2024, 455 British citizens were refused entry to Schengen countries specifically for exceeding the 90-day limit, while another 4,155 UK citizens were ordered to leave EU countries during the same period. Border officials now conduct deeper checks, demanding proof of travel plans, accommodation bookings, financial means, and return tickets.

This limitation applies across all 27 Schengen countries, not just where your property is located. If you own a holiday home in Spain but fancy a week skiing in the French Alps or touring Italian vineyards, every single day counts toward your 90-day allowance. Exceed these limits and you face fines, deportation, and potential multi-year entry bans.

The Hidden Reality: Most Owners Don’t Use Their Properties Anyway

Here’s where the mathematics become interesting. The average European second home owner uses their property for just 40 days per year. Despite investing hundreds of thousands—often millions—in property purchases, owners typically spend barely five weeks annually in their holiday homes.​

Across Europe, 25% of homeowners now own a second property, with Bulgaria (46%), Greece (39%), and Croatia (37%) leading the statistics. Of these second home owners, 44% use properties primarily as holiday homes, while 23% plan to retire there eventually. Yet the vast majority sit empty for 325 days per year, haemorrhaging money on maintenance, taxes, utilities, and insurance.​

For British owners caught in the Brexit trap, traditional ownership no longer makes financial sense. You’re legally restricted to 180 days maximum usage, yet paying 100% of costs for a property you’ll realistically use for 40 days.

Why Fractional Ownership Perfectly Matches Brexit Restrictions

Most fractional ownership properties are divided into eight equal shares, with each share representing precisely 1.5 months (approximately 45 days) of annual usage. This structure aligns perfectly with the Brexit limitations.​

Here’s the mathematics:

• Purchase 2 shares = 90 days usage = Exactly the maximum single-visit limit

• Purchase 4 shares = 180 days usage = Exactly the maximum annual limit

• Purchase 1 share = 45 days usage = More than the average 40-day usage pattern

The fractional ownership market for residential real estate is projected to reach $4.8 trillion by 2025, growing at 26.7% annually. The real estate tokenization market specifically is expected to surge from $3.5 billion in 2024 to $19.4 billion by 2033. This explosive growth reflects a fundamental shift in how people view property ownership post-Brexit.

Start Small, Expand Smart

60% of fractional ownership investors are now under 40 years old, representing a generational shift toward viewing properties as liquid assets rather than permanent anchors. The strategy is simple: start with one share (45 days) in a property, then expand strategically.​

Many of our clients purchase shares in complementary locations. For example:

• Winter: One share in a French Alps or Pyrenees ski chalet (January-February, 45 days)

• Summer: One share in a Mediterranean coastal villa in Ibiza or the Côte d’Azur (July-August, 45 days)

• Total: 90 days across two completely different environments, still within Brexit limits

This approach delivers variety, climate diversity, and seasonal experiences—all while using only half your annual 180-day allowance.

The Brutal Economics: Fractional vs. Full Ownership

The average running costs for a second home in Europe are staggering:

• Apartments: €9,000 per year in utilities, taxes, insurance, and maintenance

• Villas: €10,000-€20,000 per year when including gardening and pool maintenance

Under fractional ownership with eight shares, you pay just €1,125-€2,500 annually instead of the full amount. You’ve eliminated 87.5% of your running costs while potentially increasing your actual usage from 40 days to 45+ days.

Consider the mathematics for a British owner post-Brexit:

• Traditional ownership: Pay 100% of costs (€9,000-€20,000/year) for maximum 180 days usage

• Fractional ownership: Pay 12.5% of costs (€1,125-€2,500/year) for 45 days usage—which exceeds average usage anyway

The numbers are brutal: traditional owners pay 8x more for only 4x more usage than they’ll realistically use.

The Brexit Wake-Up Call

Many clients initially contact Co-Ownership Property expecting to live in their European property “most of the year”—only to discover it’s legally impossible post-Brexit. The 90/180-day rule isn’t a guideline; it’s EU law enforced by biometric entry-exit systems launching across Europe.

Furthermore, spending more than 183 days in an EU country triggers tax residency, subjecting you to that country’s income tax, wealth tax, and estate duties on worldwide assets. For British citizens, this creates a double-taxation nightmare requiring expensive specialist advice.

The Flexibility Advantage: Exit Strategy Built In

Regulations change. Life circumstances evolve. Perhaps after five years of 45-day holidays, you decide you want to retire to Spain full-time. With fractional ownership, you have two clean exit options:

1. Purchase additional shares from other co-owners or new listings, gradually increasing usage toward permanent residency (while accepting higher proportional costs)

2. Sell your shares at market value and use the capital—potentially at a profit—as a deposit on a traditional property

The tokenized real estate market enables liquidity previously impossible in traditional property markets. Instead of waiting 6-12 months to sell an entire property through estate agents, solicitors, and mortgage arrangements, fractional shares typically sell within weeks at transparent market prices.​

The Younger Generation’s Approach: Properties As Assets

Institutional fractional ownership transaction volumes rose 43% in Q1 2025 alone, signaling mainstream acceptance of this model. The younger generation views properties fundamentally differently: not as permanent emotional anchors, but as flexible financial assets that should generate returns, adapt to changing lifestyles, and enable geographic mobility.​

Brexit has simply accelerated this transition. When you’re legally prohibited from using your Spanish villa more than 180 days annually, why would you pay 100% of the costs? The fractional model transforms property from burden into benefit—delivering maximum flexibility, minimum financial exposure, and perfect compliance with post-Brexit limitations.

The mathematics are undeniable: fractional ownership isn’t just suitable for British second home buyers post-Brexit—it’s the only model that makes financial sense.