There are half a million British expats living in Spain along with thousands of others that own holiday homes which they travel back to and from while residing in the UK.
Not much will change. It is expected that the break up will take at least two years for the UK to officially leave the EU and therefore even longer to start afresh with the new changes to the current agreements already in place. UK Citizens are not going to see any immediate impact for at least the next few years.
Can you still buy a property in Spain?
For sure! The UK is still a member of the European Union and British Citizens have the same rights as they did before the referendum. Once the actual break-up commences is when we will see changes to rights. Though most analysts are predicting very little change is the way of UK Citizens being able to buy and sell property in Spain.
The immediate impact was the value of the pound to the euro. Within a week of the referendum result we had seen the value of GBP drop. Meaning £100,000 before the referendum would have got you €131,000 as opposed to €116,000 today.
With a weaker currency it should have an effect on client’s affordability status when it comes to calculating mortgage costs. At this moment in time the UK makes up a substantial number of buyers in Spain, thus banks are likely to not want to affect demand too much by increasing costs.
Even though Brexit has taken place, citizens of the United Kingdom continue to have a good buyers profile. For example, those citizens of the UK will still find it easier to get a mortgage as opposed to someone from Poland or Croatia.
What happens to the property after Article 50?
We must begin with a reality check. Spain welcomes Non-EU buyers and we have seen a surge of Russian, Arabian and Chinese buyers enter the market over the last five years. Simply put, being a Non-EU buyer does not mean you are unable to buy and sell property in Spain. Overseas investment is absolutely vital to the Spanish economy and this is not going to change.
When calculating local taxes, the calculations is done based on residence rather than citizenship. How long is the person at the property is far more relevant than which nationality the person has.
With bilateral tax agreements in place completely separate from European Union rules, we fully expect no changes to be made.
We must always remember that this relationship works both ways. The Spanish government absolutely desires the continuation of millions of British Citizens visiting Spain each and every year. At the same time, we too need Spanish citizens to visit our shores.
Very little will change, at least not for the next few years.
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