Buying property in Spain after Brexit
Can a British person buy a property in Spain after Brexit?
In a word ‘Yes’, a British person can still buy property in Spain. People from all over the world enjoy and own houses in Spain and this privilege has not changed since Brexit. Property ownership in Spain is not restricted to EU residents.
Will buying a house in Spain cost more now?
Wherever you are resident in the world buying property in Spain will cost the same. The taxes applicable during and after property purchase are the same for everyone wherever they are resident. The value of the GBP against the Euro will effect the price but this could work both ways depending on exchange rates. As a rough guide the taxes and costs of buying in Spain are normally around 9% of the purchase price of the house.
If you buy a house using freedom4sale we will assist and advise on every step of the purchase procedure. We have many years of experience in real estate in Spain.
Can a UK citizen still rent out their property in Spain?
Yes, you can rent your property in Spain for long term or holiday rentals. Local laws will apply to the use you put the property too. Checks should be made to this end.
The tax a UK or non EU citizen now pays has changed. EU residents pay a 19% tax on property rental income. Non EU residents, including UK residents, now pay 24% tax on rental incomes.
UK citizens where also able to apply costs to the amount of tax payable on a rental income. After Brexit the taxable rates have now changed and deductions are not applicable. UK residents now must pay a flat rate of 24% on income earned from long term or holiday rentals.
The tax you pay in Spain for your rental income will be deductible from the tax you pay in the UK for that income.
Will other property taxes in Spain still apply to UK citizens?
The local property taxes remain the same as before Brexit and apply equally to UK and EU owners. The main taxes will be IBI paid yearly for local services like rubbish collection.
Rules on visiting and using a Spanish property after Brexit
Citizens of the EU are free to move and work in all other EU countries. Before Brexit UK citizens enjoyed full freedom of movement and work in all EU countries. Post Brexit the rules of movement in the EU have changed.
UK citizens will not need a visa to visit Spain but there will be limits on length of stay.
The maximum amount of time is now ninety days in any 180 day period. So in any given six months the maximum stay is three months. This three months every six months can be used up in multiple visits.
Should UK citizens still buy in Spain after Brexit?
The costs of buying a property in Spain are the same as before Brexit. You can still visit your property without visas. The only real change is length of stay which will not effect most people. Renting out the house whilst you are not using it is still possible with a 6% extra taxation.
If you wish to stay longer then a ‘Spanish non-lucrative visa’ is possible for those with over around £25,000 in the bank or the ‘golden visa’ for those with over a million to invest in property, shares, etc Spain.
If you have 500,000 euros to invest in property in Spain you can buy yourself an amazing property and at the same time secure a long term visa. You do not have to buy just one valuable house, the ‘golden visa’ still counts if you total property portfolio adds up to 500,000 euros or over.
You will also need to be over 18 years old, not have a criminal record, have health insurance for Spain and not been refused a visa in the past.
Assistance and advice for buying property in Lanzarote
Freedom4sale has over fifteen years experience in every level of buying and selling property in Lanzarote. We can assist you through every step of the process. Just drop us a line and get the ball rolling.