Buying Spanish property post Brexit

The advent of Brexit has resulted in many British would-be expats deciding to put their dreams of a Spanish property on hold, at least for the time being.

One of the most important Brexit-related questions for many Brits still hoping for an overseas retirement involves purchasing a Spanish property after March 2019. Whatever the final result of the Brexit negotiations, Europe’s Mediterranean states including Spain are undeniably warmer and cheaper than the UK and will continue to be a major draw for UK retirees who’ve had enough of British politics.

One concern for would-be expats is whether UK citizens will still be able to buy Spanish homes once the UK is out of the EU. Common sense would state that anyone from anywhere would be able to buy a home in any country, but Brexit so far isn’t exactly based on common sense. Nevertheless, property experts believe there won’t be a problem simply purchasing a property in Spain as the right to own a home isn’t restricted to Spanish plus EU citizens. People from across the world own property in Spain, and that will, no doubt, continue.

In an interview on the Andrew Marr Show last year, Spanish Foreign Minster Alfonso Dastis said he would make certain the lives of all those in Spain’s British expat community would not be disrupted even if the UK crashes out on a ‘no deal’ basis. At the present time, that’s as good as it gets as the ongoing negotiations haven’t made much real progress on the issue. Other would-be expats are asking whether Brexit will push up the prices and purchasing costs of Spanish property, but it’s extremely unlikely this will happen.

Basically, purchasing costs are similar wherever in the world the purchaser lives. Purchase tax, standard fees, the notary’s charges and property registration fee are set by either the government or the local authority, and notary fees are transparent. The Spanish property market itself needs watching as, after some years of falling prices, it’s now recovering and seeing more interest from foreign buyers, with prices beginning to rise as a result. However, if you're buying as an investment and intending to let, today’s favourable rental income tax rates might well change from 19 to 24 per cent, the rate charged for non-EU citizen landlords.