As you know, on the 31st December 2020, the transition period for the UK to leave the European Union will end.
Due to this, we are receiving calls from our clients asking us about the situation that may arise from this date onwards, regarding the acquisition or maintenance of properties in Spain.
Below, we have collected some of the more frequently asked questions on this subject, along with their answers.
- Does Brexit mean that the British cannot buy property in Spain?
No, not at all. All foreigners can buy a property in Spain regardless of their nationality. In fact, the property market in some parts of Spain, such as Murcia, Almeria or Alicante, is heavily dependent on foreign buyers, who already account for around 12% of properties.
- Will there be any changes to the process of buying a property in Spain after Brexit for UK citizens?
Spanish property law does not distinguish between nationalities of foreign buyers, so in this respect, Brexit does not change anything for British buyers in Spain.
- Will Brexit affect the real estate market?
Since the UK announced it’s decision to leave the European Union, there has been a slight fall in the number of UK buyers, largely due to a lack of awareness of possible changes to the legislative framework.
- Has Brexit affected or will it affect property prices?
According to the Association of Property Registrars, Spanish property prices rose by 4 percent in the first quarter of this year, compared to the previous quarter, and by 6.96 percent over the year. These figures suggest that Brexit has had no effect on prices.
- Has Brexit made buying a property in Spain more expensive?
Exchange rates are notoriously volatile, and susceptible to changes in policy and uncertainty. While it is true that the pound has been weaker since the result of the Brexit referendum, the future performance of its rate against the euro is unknown.
- Are changes in the taxes related to the purchase of property expected?
Any person (Spanish or foreign) who buys a property in Spain is subject to the same taxes, which amount to between 10 and 12 percent of the purchase price. This has not changed due to Brexit, nor are there any plans to do so.
- Will I be able to rent my Spanish property after December 31st of this year?
As with shopping, foreigners are free to rent out their property in Spain for holidays and long term rentals. This has not changed since Brexit and will not change.