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Net migration refers to the total change in population, that is to say the total immigration minus emigration.
For the first time in 10 years net migration has fallen by 49,000, from 322,000 in 2015 to 273,000 in 2016, according to the Office for National Statistics.
The number of Spaniards registering as UK residents has also fallen, from 50,000 in both 2014 and 2015 to 48,000 in 2016.
In terms of people emigrating from the UK, the number of EU citizens leaving has risen 17% from 85,000 in 2015 to 103,000 in 2016.
The total number of emigrants has risen 9%, from 297,000 in 2015 to 323,000 in 2016.
Spain is the most popular EU destination for British expats, with almost 310,000 settled here.