The Brexit referendum has changed the rules of buying property in Spain. For many UK citizens interested in buying Spanish property, these can be confusing times. However, this article is here to explain how Brexit affects buying Spanish property.
Am I Allowed to Purchase a Home in Spain after Brexit?
There has been a lot of controversy regarding this, and it’s quite unfortunate how many UK citizens are being misled. In the past, citizens from countries outside the UK like Americans have been buying Spanish property without any problems. Now that Britain has exited the EU, the rules regarding this have not changed.
Yes, you can buy property in Spain as long as you can still afford it. Other than that, Spain has always promoted the idea of non-EU citizens buying property there via Golden Visa scheme and other projects. After all, the government relies heavily on revenue from citizens of other nations, whether EU or non-EU residents.
Because of Brexit, Will You Pay More than Others?
The answer to this is also NO. The price of property doesn’t matter whether you are from an EU country or not. Everyone buying property in Spain has to pay notary, property registry fees, and purchase tax.
There is a key difference when it comes to notary fees in the UK and Spain. In the UK, the procedure is less complicated. All you have to do is exchange contracts, purchase the property, and adding your name to the deed at the land register. In Spain, however, there must be a witness and this fee is regulated by the government regarding the value of the property and other conditions related to it.
Post Brexit, the only thing that may affect the total cost of buying Spanish property is the fluctuation of the Euro against the British Pound. However, all factors considered, the cost will be the same. And irrespective of whether you are a Spanish resident or not, you will still have to pay taxes regarding the purchase.
Also, Because of Brexit, Will It be Hard to Visit Your Property?
If you are interested in making short term visits, then you won’t notice any challenges when visiting your property. This makes it ideal for UK residents interested in buying a holiday home here. Nonetheless, for those who wish to stay for more than 3 months, the laws are still not clear or agreed on and you might need to get a visa. And the chances of this becoming an issue are very minimal.
One factor you need to keep in mind is that Tourism is one of the leading economic activities in Spain. As a result, the government will do all it takes to ensure more people continue to come. There being about 18 million Brits in Spain, visiting your property after buying it here is unlikely to lead to be problematic. Spain benefits more by having many foreigners in the country and it would be unwise for them to put stringent visiting measures.
Is It Possible for UK Residents to Rent Property in Spain?
Yes, it’s still possible, although it’s going to be more costly. The reason for this is the tax difference between EU nationals and non-EU citizens which is 19% and 24% respectively. And although the process of renting Spanish property is going to be the same, the taxes are likely going to rise.
How is the Spanish Property Market after Brexit?
After its significant fall from 2007 to 2014, the Spanish property market has fluctuated severally. Nonetheless, at the moment, it is quite stable because it has been recovering for the past 6 years. If you are considering buying property in Spain then know that it is a wise investment.
Should I Buy Property in Spain post Brexit?
If like most UK residents, you are contemplating whether buying property in Spain post Brexit is a smart idea. You should know that as we usher in the second half of 2020, the prices of Spanish property have stayed steady therefore making such a purchase a sustainable investment. And even though the rules of buying property in Spain are yet to be clarified, there is absolutely nothing wrong with proceeding with this investment. Feel free to seek the guidance of a real estate guru if you are unsure of how to proceed with buying Spanish property as a UK resident.