Many Britons, after the Brexit procedure that the UK launched in 2020, are still worried about how Brexit will affect buying property in Spain. Property in Spain attracts many Britons, because after cloudy and rather cool weather in their native country, the sunny shores of the Costa Blanca or any other resort region seem to the British a real paradise! And these are not just words, but dry statistics: more than 300,000 properties in Spain have been purchased by the British in recent years, and from 10 to 18 million people come here as tourists every year, many of whom visit the country in order to find suitable apartments and
houses for themselves. If you want to know how Brexit will affect owning property in Spain and how to join the ranks of happy homeowners on the Costa Blanca and Costa Calida, make sure to read the article from WTG Spain!
How will Brexit affect buying property in Spain and what is it?
Brexit is a term that literally means the UK’s withdrawal from the European Union. The procedure was launched in 2020 and was a shock to the whole world. For the population, this had both positive and negative consequences, but we are interested mainly in how Brexit will affect buying property in Spain. In order not to torment the reader, we answer briefly and clearly: hardly. Residents of Britain can still easily buy an apartment or house in sunny Spain. But some adjustments in taxes and purchase conditions were still made, and we would like to tell you about them below. If you would like to buy property in Spain and are worried about legal subtleties, contact WTG agents and you will receive comprehensive up-to-date information. If you are not yet ready to get in touch and would like to know a little more about how to buy property in Spain after Brexit, we recommend that you read this
article to the end.
How has Brexit affected property prices in Spain?
The short answer is it hasn’t. Purchase taxes for European Union residents are the same as for UK residents. They range from 10% to 12% of the value of the house, depending on the region where you plan to buy. Also, the fees with taxes, as well as the costs of legal
procedures, have not changed. A small fluctuation in prices could only have caused the first shock to the market, which occurred immediately after the start of the Brexit procedure, but now it is being reduced to a minimum. We remind you that when buying a property in Spain, you must pay, in addition to the value of the house, taxes such as:
● VAT (in Spanish – IVA). It is 10% of the value of the house. It is paid as a one-time
payment when drawing up a contract for the sale.
● Stamp duty (in Spanish – AJD). It can be from 0.5% to 1.5% depending on the
selected region. It is also paid only upon purchase.
● Regular taxes, including garbage collection, utility bills, wealth tax. You can learn
more about them in a separate article or during consultation with the manager.
How long can I stay in Spain after Brexit?
Many of those who are interested in how Brexit will affect buying property in Spain are puzzled by the question of the length of stay in the country as a non-resident. This is one of the few major changes that has been caused by the Brexit procedure and UK residents in general. If you are not a Golden Visa holder (i.e. you have not bought a property worth more than
€500,000), or have not received official Spanish citizenship, you are now subject to the laws of the Schengen area. In other words, if you are not a resident of Spain with citizenship, you can stay in the country for exactly 3 months every 6 months. This means that 6 months a year with breaks of 3 months you can be in your house without worrying about anything. If
you want to move to the country on a permanent basis, you will have to take care of becoming a resident of Spain.
Can I make money by renting out the purchased house to tourists?
This is another important question for those who do not know how Brexit will affect property owners in Spain. Do not worry, there are no restrictions for foreigners to rent their own housing after the UK left the European Union. As before, you can buy real estate, live in it for your own satisfaction, and, if necessary, rent it out, earn an income but only if you pay taxes. The only change that will now affect the British is the amount of the tax, which has increased by 5%. Residents of Spain pay a tax of 19% when renting out their property, and non-residents living in the countries of the European Union must pay 24% tax on the amount of
income.
How to buy a property in Spain after brexit? Drawing conclusions
As you can see, the answer to the question, how will Brexit affect buying property in Spain, is more than comforting. There were no critical changes, the authorities did everything necessary to ease the conditions for the inhabitants of the UK and made
concessions on many points. The only significant changes are the amount of tax that you will need to pay when renting out the property and the length of stay. In all other respects, the situation has remained unchanged – you can still either find a new home in sunny Spain as a non-resident of the country or obtain citizenship to move on a permanent basis. Which option is best for you – it is up to you.
