The UK has officially left the EU and the Withdrawal Agreement is in full effect. But what does this mean for Brits looking to buy a second home in Spain?
You may be wondering; do I still have the right to buy? Have tax implications changed? And can I visit my home in Spain as I please?
While Brexit won’t prevent people from buying their sunny holiday/retirement home in Spain, there are some changes to take into consideration. Here, we explore popular questions asked by prospective buyers during these times to ensure you know everything you need to before buying a property in Spain post-Brexit.
Yes, you’re obliged to pay tax when owning a property in Spain – but has Brexit had an effect on this? Fortunately, no. The taxes required for Spanish property ownership remain unchanged post-Brexit.
When looking to purchase a property in Spain, the taxes you will encounter depend on the type of property you decide on. Let’s take a closer look:
Buying a new-build property in Spain will result in two taxes needing to be paid. VAT and Stamp duty.
So, between IVA and AJD, an additional 11.5% is required to pay on top of the property cost.
For resale properties, you’re liable for paying just one tax, and that’s Transfer tax (Impuesto de Transmisiones Partimoniales in Spanish, or ITP for short). The amount of ITP due to be payed depends on the price of the property you’re looking to purchase and works on a sliding scale.
For example, on the Costa Del Sol in 2020, ITP was levied at the following rates:
Prior to Brexit, as EU citizens, UK nationals were able to live and work in any other country within the European Union, which includes Spain.
Many Brits took advantage of this and were able to travel and live in Spain for as long as they wished. Since Brexit however, this is no longer the case.
Currently, UK nationals can travel to Spain at any time as tourists, provided they don’t stay longer than 90 days in any 180-day period. But, if you’re looking to stay for any time longer, you’ll need to apply for permission to do so.
Non EU residents, including Brits, can become permanent residents of Spain as long as they meet the criteria set by Spanish authorities, and provide correct documentation.
Non EU residents can also take advantage of the Spanish Golden Visa, if you’re looking to make a significant investment in Spanish property that is. By obtaining a Spanish Golden Visa, you’re able to travel to and from Spain freely, stay for as long as you please, and bring your family members along with you.
In order to obtain a Spanish Golden Visa though, you must make one of the following investments:
In addition to one of the investments above, you must also:
Given the COVID-19 pandemic has overlapped the end of the Brexit transition period, it’s difficult to know whether Brexit has had any real influence on the Spanish property market.
Having said that, by analysing the Spanish property prices over the last few years, we’re able get a good understanding of the current market and where it’s heading.
According to Global Property Guide, house prices in Spain have dropped by 11.59% over the past 10 years, and by 1.14% since last year (excluding inflation).
If you’re keen on owning a home in Spain, Brexit shouldn’t change that. The truth is, almost none of the fundamental aspects of buying and owning a property in Spain have been affected due to Brexit.
Looking to purchase your dream home in Spain? Why not consult with a Spanish real estate specialist.
At Purple Property Consultants, we’re here to help you every step of the way. Right from your property viewing trip, through to receiving the keys to your new home, we’ll introduce you to our trusted partners to ensure your dream home in Spain becomes a reality.
For more information on our offering, or if you have any questions related to Spanish property, contact us today, we’re always happy to help.
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