Everything you need to know about buying property in Spain after Brexit
Table of contents:
Can Brits still buy property in Spain after Brexit?
The good news is that British citizens can still buy property in Spain after Brexit. Spain has always been a popular destination for UK nationals seeking a second home or retirement spot. While the process may have evolved, it's still very much possible. We'll delve into the specifics of the process and any new requirements you should be aware of.
Prior to the global pandemic, Spain's real estate market was flourishing. The recovery from the 2008 financial crisis seemed like a distant memory, and the country held undeniable appeal for investors worldwide. However, the onset of the pandemic introduced new challenges.
Price fluctuations became the norm, with a notable trend towards declining property prices. The reduced purchasing power of many locals and a decrease in foreign investors and expats relocating to Spain, due to travel restrictions, contributed to a drop in demand, subsequently leading to lower property prices.
While we await a return to global stability, it's essential to recognise that the Spanish property market still holds promise for UK nationals. Whether you're considering buying a property to rent it out or seeking a seasonal retreat, Spain's enduring appeal makes it an attractive destination.
Has the Spanish property market changed after Brexit?
Understanding the post-Brexit landscape of the Spanish property market is crucial. Factors such as demand, inventory, and the impact of Brexit on property transactions can affect the property buying process.
We have to be patient until the global situation improves and returns to normal to truly understand how things will turn out for the Spanish property market. However, it seems unlikely that buying property in Spain will stop being an attractive option for people from the UK, whether they want to rent all year round or just stay for a few months.
What are property prices like in Spain after Brexit?
Property prices are a significant consideration when buying real estate in Spain. The Brexit transition has influenced property prices differently in various regions.
Property prices mainly depend on whether the property being bought is a new home to a bank or developer (first purchase/transfer), or if it is a resale (second purchase/transfer). The costs can also vary depending on the specific region, called an autonomous community (comunidad autónoma), where you're buying the property.
Can you rent property in Spain after Brexit?
If you're not looking to buy property immediately, renting is a viable option. Brexit has not changed how you can use your property once you buy it. However, what this process has affected is the taxes you will have to pay if you decide to rent it out.
British people play a big role in buying property in Spain, especially in popular tourist spots like the Costa del Sol, including places like Malaga, Marbella, Nerja, and Mijas.
If you're from Spain, Europe, or another country and you own or want to buy a property in Spain, there are rules in different regions that say you have to register your property as a tourist rental before you can rent it out.
How to sell property in Spain after Brexit?
For those who already own property in Spain and are considering selling, this section will guide.
Selling your Spanish property post-Brexit hasn't influenced the selling process. You will still be liable to pay Capital Gains Tax on any gains you make from selling your property. The gain in this case is the difference between the sale price and the purchase price.
Have there been any changes to living in Spain after Brexit?
Living in Spain after Brexit offers a unique experience. From healthcare to residency requirements and cultural adjustments, we'll provide valuable insights to make your transition as smooth as possible.
After Brexit, if you're a British citizen and you want to live in Spain, you need to make sure you have the right paperwork:
- Get your residence permit or TIE (Tarjeta de identidad de extranjero) within 30 days of arriving.
- Get your NIE number, which is your foreigner tax identification number.
- Register yourself at the city hall to get your empadronamiento certificate.
That being said, with the right paperwork you are still not allowed to stay in Spain for longer than 90 days in a 180-day period. However, if you buy a property, you can get residency through the Spanish golden visa program. This special permit lets you live in Spain for 2 years (and you can renew it), and you only need to visit Spain once a year. This is different from other residency options that usually ask you to spend at least 6 months in the country.
Summary: Should I still buy property in Spain after Brexit?
If you've set your sights on owning a home in Spain, rest assured that Brexit should not be a hindrance to your dreams. The fact remains that virtually none of the core elements associated with purchasing and possessing property in Spain have undergone substantial changes due to Brexit.
Should you be contemplating a property investment in Spain and harbor concerns about the Brexit implications for your situation, we encourage you to reach out to us. Feel free to get in touch via email at info@easyfx.com, connect with us over the phone at 020 7959 6995, or simply fill out our convenient contact form. Your inquiries are valuable to us, and we are here to provide the guidance and information you need.
Ready to buy your next property in Spain?
Buying a house in Spain can be an exciting and rewarding experience with careful planning and professional assistance. Embrace the unique charm and lifestyle Spain offers, and with the right guidance, you can turn your dream of owning a property in this beautiful country into a reality.
Remember to stay informed, seek expert advice, and immerse yourself in the local culture to make the most of your Spanish property ownership. Happy house hunting.
Speak to an expert
Authorised by the FCARegulated by the Financial Conduct Authority.
Segregated & SecureAll client funds are held in segregated safeguarding accounts.
Real PeopleOur advisors are available whenever you need them.
Established in 2008A wealth of foreign exchange experience at your fingertips.