BUYING AND SELLING PROPERTY IN SPAIN AFTER BREXIT

IS IT SAFE AND WISE TO BUY A PROPERTY IN SPAIN AFTER BREXIT?

INTRODUCTION

So, Brexit is done and dusted, finally. How does it affect buying a house in Spain after Brexit?

CAN I STILL BUY A PROPERTY IN SPAIN AFTER BREXIT? WHAT HAS CHANGED?

In a nutshell “Yes you can still buy” and “Brexit has made very little difference” except for 2 points: –

1) If you rent out your property you will now be liable to pay 24% tax on the income as opposed to 19% previously.

2) If you plan to spend more than 90 days in any 180 in Spain (or any other Schengen country) you will have to apply for residency, however, as a resident you will not be subject to the increase in tax on rental income in point 1 above.

I, personally, have had to apply for residency because, with a Spanish wife and 2 teenage boys I spend over 90 days continuously in Spain (especially now during the covid19 pandemic) and, had I not applied (and been accepted) for residency, I would have had to return to the UK alone, without the family.

It is safe and, if you want to buy, then it is also wise to buy a property in Spain after Brexit.

I could here write oodles of unnecessary details but frankly, apart from the points above, that’s it – nothing much changed.

So, to recap, what is the current situation?

1) You spend less than 90 days in any 180 in Spain or other Schengen countries: –

a) the only difference is you will pay an extra 5% tax on any rental income from your property

b) you will need to go through the passport control for non EU citizens

2) You spend more than 90 days in any 180 in Spain or other Schengen countries: –

a) you will need to apply for and be granted residency (Residencia) in Spain (see below about getting Residencia)

b) with residency approved you will be entitled to spend as much time as you wish in Spain and all other Schengen countries (same as before Brexit)

WILL PROPERTY PRICES FALL IN SPAIN AFTER BREXIT?

IS IT WISE AND SAFE TO BUY A PROPERTY IN SPAIN AFTER BREXIT?

Property prices in Spain have already dropped for Brexit and recently there has been a number of new developments starting up in various areas with strong pre sales data reported.

Prices obviously can fall but the general indications would suggest a period of stability in the market and growth once the pandemic comes under control.

It could be a wise time to make that choice and realise your lifetime dream.

WILL THE CORONA VIRUS AFFECT PRICES?

In the aftermath of Covid & Brexit it is unlikely but not unimaginable that investment and currency controls could be introduced to bolster the UK economy.

If that were to be the time window to benefit from existing legislation is now.

HOW DO I APPLY FOR RESIDENCY IN SPAIN AFTER BREXIT?

RESIDENCY

• without Spanish residency you will only be able to use your house for 90 days in any 180 – that means maximum stay of 3 months (then 3 months outside of all EU countries) thus changing the lifestyle of the “swallows” who head south for the winter sun
• with residency you can enjoy free unlimited access to your Spanish house and all the Schengen countries of the European Union
• getting Spanish residency does not necessarily mean you are liable for Spanish taxation but this is dependant on other criteria which we explain later in the blog

SO AM I STILL BRITISH, ENGLISH, SpPANISH, SPANGLISH OR WHAT???

You are still British or English (as you choose) but with the rights of residency in Spain and all other Schengen countries.

A good friend of mine needed to be able to spend a continuous period in a Schengen country that applied these 90 day rules. He discovered that, having an Irish grandmother, he was eligible for an Irish passport.

Having obtained one, he was able to spend as much time as he liked in Schengen countries by using that passport.

Dual nationality was a boon then just as dual residency rights may well be in the future. Probably More legitimately!

Could this be a way to confound the Brexiteers and recover the freedom to choose that Brexit has denied you?

Mmmmmmm – maybe?

SO HOW DO I GET SPANISH RESIDENCY AND DOES IT AFFECT MY RIGHTS AS A BRITISH CITIZEN?

a) buy a house for €500,000.00 or more and you are entitled to Spanish residency via what they call the “golden visa”

b) invest €1 million plus in Spain (various options)

c) apply post property purchase through the Spanish immigration department

and then: –

WHAT DO I NEED TO QUALIFY FOR SPANISH RESIDENCY?

1) a Spanish bank account

2) an acceptable regular income or proof of adequate financial independence in the form of a certificate of funds available from your Spanish bank account “Certificado de Saldo”)

3) ownership of, or a rental contract for, a Spanish residential property

4) adequate health insurance either through the acceptance of form S1 from the NHS or via private health insurance taken out in Spain

WHAT ARE THE IMPLICATIONS OF TAKING UP SPANISH RESIDENCY?

1) you will need to pay any taxes on income to Spain rather than UK if any of the following apply: -
a) if you have spouse or children living habitually in Spain
b) if you spend more than 183 days per year in Spain
c) have the core of your interests in Spain
2) you can continue to pay your tax to the UK government provided neither of the 3 points above apply to you
3) you will need to exchange your UK driving licence for a Spanish one

I’M A BRITISH OWNER OF A PROPERTY IN SPAIN – WHAT HAPPENS NOW? WHAT ARE MY RIGHTS AS A BRITISH CITIZEN? HAVE MY CITIZENS RIGHTS CHANGED?

Answers to the following frequently asked questions.

I have owned a property in Spain prior to Brexit, have my citizens’ rights changed at all?

No, as an existing property owner in Spain your current citizens rights are unchanged, nothing changes legally in terms of your rights other than the “Residency” status as mentioned above.

Is my European Health Insurance Card still valid?

Yes it is.

Do I have to be aware of anything that will affect my citizens’ rights as they were prior to Brexit?

No, at this moment nothing at all other than “Residency”.

SELLING A PROPERTY IN SPAIN AFTER BREXIT & OUR MARKET FORECAST

More questions and answers: –

WILL PRICES FALL?

Very unlikely.

IS NOW A GOOD TIME TO BE THINKING ABOUT SELLING MY PROPERTY IN SPAIN? 

If you want to sell then why not, now is probably as good a time as any since prices are likely to remain stable with slow but steady growth meaning more buyers should be looking around.

WILL THE CORONA VIRUS AND BREXIT AFFECT CHANCES OF SELLING PROPERTY OR THE PRICE ACHIEVED? 

The Brexit price drop was recorded prior to Brexit and actually now we are seeing a higher level of British buyers since Brexit began. This is almost certainly due to the fact that: –

Brexit price drop has already happened

The uncertainty of Brexit is history

More people are looking to buy in order to obtain Spanish residency status 

SO THINKING OF BUYING OR SELLING A PROPERTY IN SPAIN AFTER BREXIT

LET THE TEAM AT SEARCH AND SURVEY SPAIN HELP YOU?

There is a huge variety of properties for sale in Spain, new, second hand and repossessed properties.

Want a small apartment or a premium villa on the coast? Choose your area: -Costa Blanca, Costa Brava or a flat in one of our great cities?.

Wherever – just let us know and we’ll start a search plan for your ideal dream home in the sun.

If you can prefer you surf the local estate agencies but why not contact a property expert like us – Search and Survey Spain.

We will provide you with independent advice, will search the ideal home for you and guide you through the process when buying in Spain.

You finished your holiday, liked it and want more?

There are literally hundreds of portals and estate agents dealing with ‘000’s of properties all over Spain.

And trying to wade your way through all of those is impossible, especially when you have to make allowances for: –

“Estate Agent Lingo and Infoxication”.

That’s where we come in: –

If you like we can help you in making the right selection for your requirements. We’ll ensure the property you choose is legal in every respect, well built and value for money.

Also free of external charges and liens etc.

At Search and Survey Spain we are not estate agents and have no allegiance to any estate agencies.

Our only interest is finding the right property for you, that the property is legal, well built, value for money and free of any external charges or liens.

If you like we can help you make the right selection to suit your requirements?

This is our speciality and something we’ve been doing for the last 40 or so years.

Click the link here to visit our website and see what you think? We are happy to give you a call if you want to find out more about us.

For more information, please click here:- 
 https://www.searchandsurveyspain.com/contact