Buying property in Spain after Brexit

Brexit. It’s led to a lot of changes for Britain – particularly with respect to bureaucracy and freedom of movement. Which is why, since the end of the transition period on 31^st December 2020, countless UK nationals have got in touch to ask us the same question…‘What is different about buying a property in Spain after Brexit?’

As a leading real estate agent in the Costa del Sol, here at Bromley Estates Marbella, we have over a decade of experience in dealing with both EU and non-EU property transactions in Spain. Therefore, we have exceptional knowledge in this area.

Here we explore how purchasing a property in Spain has been affected by the referendum result – and attempt to address any concerns you may have as a buyer or investor.

Can I buy property in Spain after Brexit?

Yes

It’s simple. If you can pay the purchase price, you can purchase the property. It doesn’t matter if you’re an EU citizen or a non-EU citizen, you have the same guarantees and rights, and the process of buying a property in Spain after Brexit is the same for absolutely everyone.

In fact, the government actively encourages non-EU citizens to buy property in Spain – offering a ‘Golden Visa’ for anyone who invests €500,000 or more in Spanish real estate.

Does it cost more to buy property in Spain because of Brexit?

No

Regardless of who the buyer is, the cost of a property in Spain is fixed. And as a non-EU citizen, you’ll only be charged the same asking price, purchase tax, notary fees and property registry fees as a buyer from Spain – or any other EU country.

You will, however, need to consider the current value of the GBP (Great British Pound).

The consequences of Brexit will continue to unfold over the next few years, having an inevitable influence on the pound to euro exchange rate. And of course, this could affect both property prices and the cost of living for UK nationals in Spain.

Our advice? Time your purchase carefully and try to avoid any unfavourable shifts in currency value. Here at Bromley Estates, we partner with several leading currency specialists in the Costa del Sol. So for help securing the best possible exchange rate, be sure to get in touch.

Is it difficult to live in Spain post-Brexit?

Yes and no

UK nationals no longer have ‘freedom of movement’ – and whilst this doesn’t affect your right to buy a house in Spain after Brexit, it does limit the length of time you can spend there.

All non-EU citizens – including Brits – now face the Schengen 90 day rule. This states that, unless you registered as a resident before 31^st December 2020, you can only remain in the country for a maximum of 90 days, in every 180.

If you plan to use the property as a holiday home – perhaps visiting for short periods over the summer – this is unlikely to be an issue. But if you were hoping to spend the entire autumn-winter season in the sunshine, unfortunately, it’s not quite as straightforward as it used to be.

There are, however, ways to get around the 90 day rule. For example, various visas are now available to non-EU citizens – such as the non-lucrative visa, the golden visa, work visas and more – that allow you to stay for longer, providing you meet certain conditions. And you certainly shouldn’t let this put you off following your dream.

Am I allowed to rent the property?

Yes

Following Brexit, you still have the right to own and rent a property in Spain to make an income. But there is a catch… as a non-EU citizen, you’ll now be subject to a higher tax rate.

Unlike EU citizens – who are charged 19% rental income tax – since 1^st January 2021, Brits are now charged 24% and are unable to deduct any rental expenses from the amount declared. This means you will be taxed 24% on your gross rental income, rather than your net rental income.

Has the Spanish property market been affected by Brexit?

No

Over the last decade, the Spanish property market has seen a steady rise in prices. Property in Spain is still a good investment, and Brexit certainly hasn’t affected demand. In fact, due to legislation passed in 2019, buying a house in Spain after Brexit has been easier than ever. And the number of UK citizens choosing to invest has actually increased.

It’s also important to note that, whilst the coronavirus pandemic was unprecedented, it’s had very little impact on the property market. Property prices have risen by 8.5% over the last 12 months and 2021 was one of the busiest years on record for sales – with, on average, 91 homes sold every day.

Contact our property specialists today

If you’re interested in buying property in Spain, despite Brexit, now is a great time to invest. True, some things are a little trickier. But whether you’re looking to relocate permanently as a retiree, would like a new holiday home for your family, or just wish to extend your rental opportunities, it’s all still possible – and our experts are on hand to help.

Here at Bromley Estates Marbella, we have an extensive portfolio of properties for sale in the Costa del Sol – including townhouses, apartments and villas to suit all needs, preferences and budgets. And as a leading real estate agent, we can guide you through the buying process and help to make your dream a reality – whether you’re an EU citizen or not.  

If you have any further questions about buying a house in Spain after Brexit, or would like to start your property search, you’re welcome to contact us at any time. Either call us on +34 952 939 460 (+44 208 068 7606) or send an email to in**@br********************.com and we’ll respond to your enquiry as soon as possible.