Brexit should not deter you from buying property in Spain according to solicitorsinspain.com.
The most important thing to understand is that you still have the right to buy regardless of the UK being part of the EU or not and anyone who can afford to purchase property may do so regardless of Brexit.
Many people from all over the world have previously bought property in Spain and will continue to do so. The UK is no exception.
Equally, buying property in Spain is not likely to cost you any more money as a UK national than it would have if you were from the USA or China as costs are not affected by your nationality.
What are the costs?
Costs to consider include purchase tax for notaries, the property registry fee and any miscellaneous expenses.
The continuing effects that Brexit may have on the Spanish property market and currency may affect the cost to you in real terms, but that has always been the case with the worldwide property market, which is subject to fluctuations.
Just as you can still buy property in Spain, you can also continue to rent it out after Brexit.
Whether a short-term or long-term rental, you have the right to do whatever you choose with the property according to the rules applicable in each autonomous community.
Be aware however that further to Brexit, as a UK national, you may have to now pay a higher rate of residence tax. EU nationals living in Spain will pay at a rate of 19%, however UK residents will now be obliged to pay the non-EU rate which is 24%.
Prior to Brexit, you could reduce the amount of tax by deducting your allowable expenses of the rental. You will now no longer be able to do that and have to pay 24% of the gross rental income and tax.
You can however offset the tax payments against your UK tax bill for the same income.
Many of the taxes in relation to property ownership in Spain have not changed further to Brexit.
The main taxes you encounter as a property owner in Spain are:
- Purchase tax (IBI) which is similar to council tax
- VAT (which is called IVA in Spain)
These are still charged at the same level regardless of your nationality.
You can still visit your property in Spain regularly after Brexit
According to the current rules, UK nationals can travel to Spain at any time as tourists, providing they stay no longer than 90 days during any 180-day period. If you want to stay longer than that period, you have to apply for permission to do so.
Because of the global covid-19 pandemic, it’s difficult to determine whether Brexit has impacted Spanish property prices. As restrictions are lifted WE will get a clearer picture of how Brexit has affected prices in Spain.