Many Britons dream of escaping to the sun by buying a property in Spain, to live in permanently, or to use as a holiday home. However, with the implications of Brexit, will people in the UK still be able to buy a place here in the Spanish sun?
Currently, negotiations are being fiercely fought, to get every aspect ironed out before the official Brexit deadline day, which is currently the 29th March 2019. However, things are still unclear as there has been no formalised agreement for British expats living in Spain. For a start, we do not know how free movement of people will be affected.
One thing is for sure, is that Britons will still be able to buy a property in Spain after Britain leaves the EU, as Spain current offers citizens from outside of the EU the right to buy here. However, how freely people can travel, as well as the potential access to public healthcare, may make people wary of making the transition to Spain, particularly if they are moving for retirement purposes.
What Are the Costs of Buying Property in Spain?
Whether the UK is in the EU or not, Britons will face the same costs of buying a property in Spain. Expenses when purchasing a property include;
The only way the costs will change for purchasing a property will be the change in currency value. After Brexit, we do not know whether the Pound will weaken or strengthen against the Euro.
As property laws will remain the same in Spain, you will still have the same advantages, such as renting out your property and choose a buy-to-let property. However, a difference to be aware of is that rental income tax may be the non-EU rate of 24% instead of the current EU rental income tax rate of 19%. Another consideration is the potential change to inheritance tax; however, it is unclear how this may change post Brexit.
While there is no significant change to the Spanish property market, the main implication for Brits is likely to be how freedom of movement is restricted. After Brexit, rules may change giving more significant restrictions on both short-term holidays and long-term stays. There may also be implications regarding visas and permanently relocating to Spain, however, until an agreement is reached, we do not know how severe the restrictions will be.
If you would like further information on purchasing property here, please see our guide to buying a resale property in Spain.
January 14, 2021