Will You Still Be Able To Buy Spanish Property?
At the moment, Spain does not have any restrictions or requirements on being a national of an EU country when it comes to buying property. Due to this, there should be no impact on British investments in Spain after the UK officially leaves the European Union. This means that British nationals will still be able to buy property in Spain if they want.
A lot of people buy a property in Spain as a holiday home where they can enjoy the sun. Other people purchase these properties as an investment. Spain has a lot to offer including beautiful beaches, amazing mountains, and a thriving tourism industry.
While purchasing a property in Spain should not be a problem, there is one point to consider. As a national of an EU state, people have the right to enter, leave, work and live in any member state without any permits or licenses. The future of British nationals after Brexit is still uncertain when it comes to entering and staying in an EU member state. This is something that still needs to be resolved in negotiations and hopefully will end in a result that is in the interest of all citizens.
Will It Cost More To Buy A Property?
When you buy a property in Spain, the transfer tax is applicable on any existing property. Spanish VAT and stamp duty will also be payable on any newly built properties that you buy from the developer. The current rates for these taxes and fees will be paid by the property purchaser. The determination of the rate is set by the Spanish government and does not relate to the nationality of the buyer or whether they are a citizen of the EU.
There are some additional costs that will apply when you buy a property. This will include the Land Registry fees which are payable to the Local Registrar and the notarial fees. Spain is a notarial system where a notary is required for every transaction as the public official who conveys the property. These fees will need to be paid whether you are a national from an EU member state or not. As such, property purchases in Spain after Brexit should not be more expensive than they currently are.
An established estate agent in Los Gigantes who we spoke to agrees that the chance of an amicable agreement going forward is very good and there is no need to stress because both parties are looking for a deal that is beneficial to each other..
Will You Have The Right To Rent Out A Property You Own In Spain?
Rental properties are regulated in Spain by the Ley de Arrendamientos Urbanos as well as the regional legislation for the 17 Autonomous Communities. The Ley de Arrendamientos Urbanos is the main legislation and will cover all rental of a property as a primary home or for other use such as temporary rentals. Tourist rentals and vacational rentals are regulated on a regional level and will be highly regulated in certain areas.
Currently, there are no restrictions or references related to landlords. This means that you should not face any issues if you are renting the property out, but are not a citizen of an EU member state.
What Protection Will You Have As A UK Buyer?
The signing of a deed of sale is how all property transactions are completed in Spain. This will need to be done before a Notario who conveys the property. They will confirm the identity of all the parties and the validity of the property transfer.
The Notario is a public official and will act in the interest of both parties. This is why you should get legal advice and instruction from an independent lawyer. The lawyer should be qualified in both Spain and the UK. This will ensure that your interests are protected and you get the best advice for your situation.
Will You Be At A Disadvantage When Trying To Sell A Spanish Property?
The post-Brexit scenario is still unclear and there is no certainty regarding Double Tay Treaties. It is unknown if such as treaty agreement will be signed between Spain and the UK to resolve any issues that could occur in these situations.
The Double Treaty Agreement these two countries already have covers income tax. However, there is no treaty related to inheritance tax. The UK does take inheritance tax paid in Spain into account.
Another issue in this situation is the different tax rates for EU and non-EU nationals. These rates are constantly changing and it is impossible to predict what the future tax situation will be.
You can find Delmar Estate Agency online listed with many popular sites.