Aside from the ongoing global pandemic, these are uneasy times for both British expats already living in Spain and those who are looking to buy here in the not-so-distant future due to the UK officially leaving the EU as of 1st January 2020.
The number one thing to remember right now is that there are no rules in Spain that restrict the purchase of Spanish real estate to only EU citizens. In fact, the Spanish government encourages foreigners from all corners of the world to buy here as Spain relies so heavily on tourism. Therefore, even though post-Brext deals seem to have been put aside for the time being to deal with the COVID-19 pandemic, you can rest easy knowing that even after the transition period ends you will be able to buy your dream property in sunny Spain.
What will probably be the biggest and most-likely changes is that tax contributions for property owners will increase. Currently non-residents need only declare their net income from any property rentals, however after Brexit they will be taxed on their gross income. Non-resident income tax is usually 19% for Brits, but as they will be non-EU residents starting next year this amount will rise to 24%.
Inheritance tax will be applied according to the laws of the area you own your property in. Know that in Andalusia the inheritance and gift tax is a very good rate but will rise slightly once you are a non-EU resident.
As for all other taxes related to buying and owning property in Spain, they will remain the same, however the fluctuation of the GBP and the EURO post-Brexit will likely influence how much you actually end up paying for your property.
Something else to keep in mind is how long you will be able to visit Spain for after 1st January 2021. The current rules for non-EU citizens is that they may stay in Europe for a maximum of 90 days for every six months, meaning if you plan to spend any more time than this at your property in Spain you will likely need a Visa – no one knows this for sure yet though.
In a nutshell, although Brexit can seem daunting for those looking to live and/or own a property in Spain next year, for now there is no reason for concern. Buying should still be a pretty straight-forward process even as a non-EU citizen, especially if you find yourself a good lawyer to be with you every step of the way.
Our team at Premier Law has over 30 years’ experience in handling real estate transactions and would be more than happy to help with both buying your property and setting up your residency here once arrived.
Contact us now at email@example.com or call us on +34 952 764 483.