Buying a Property in Spain After Brexit

Why Smart Expats are Buying a Property in Spain Before Brexit

Brexit seems to affect everything, from the availability and price of medications to the rights and security of expats owning property abroad. With the initial Brexit delayed from March 2019 to October 31st, and finally approved on January 31st of 2020, smart British investors are securing their long-term rights in Europe by snapping up properties in Spain.

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The negotiation between Europe and the Uk has an expiration day that ends on December 31st 2020 heralding abrupt and major changes unless there is an agreement. And questions like should I buy a property in Spain after brexit? How will the healthcare be after brexit?

The benefits of moving to Spain post-Brexit are all the easier for those who already own a property and have EU rights grandfathered in. The drop in the value of the pound and pitiful interest rates have also contributed to many Brits deciding that it is the best time to buy their holiday villa or permanent home in Spain But time is running out. 

If you are wondering if you can buy a property in Spain after brexit, the answer is clear: Yes. 

Costs of buying a house in Spain post-Brexit

The taxes and costs related to the purchase of a new property in Spain are the same:

  • Notary’s fee
  • VAT or ITP (Transfer Tax)
  • Registration tax
  • Others (Lawyers, Administrative agency… )

Bare in mind that, even it is not new, the currency fluctuation and the value of the euro and pound at the moment of the purchase can influence how much you pay to buy a property in Spain after Brexit. The current Brexit situation is increasing this fluctuation even more and getting professional advice in this matter could be a good idea to secure a good deal.

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Renting your property in Spain after Brexit

You will still be able to rent your property in Spain after Brexit, however the taxation on rental incomes will change. At the moment EU citizens are paying 19% of their income rentals while non EU citizens can be charged up to 24%. If no agreement is made prior to Brexit due date, it is most likely that UK residents will have to pay 24% of income tax.

Residency permits in Spain after Brexit

If you are visiting your property in Spain for short periods you won’t feel any difference. However, if you want to stay in your property for an ongoing period of 90 days or more you might need a residence visa. This subject is still on the table and nothing has been set yet.

If you are thinking of buying a property in Spain from luxury villas in Marbella to a beautiful beach apartment in the Costa del Sol. Some of the changes regarding the residency status to consider are:

  • UK nationals residents in Spain prior to the 31st of December 2020, will have the rights to residency and freedom of movement as well as health insurance as it used to be. 
  • Applicants to national residence in Spain after 31st of December 2020 might have different rights than to the ones mentioned above. They could have either those recognized in a future agreement between UK and Spain or those recognized by the Spanish Law.
  • UK nationals, and family members will not have to apply for a new status. They will receive a card confirming their status and rights as in the Withdrawal Agreement.
  • UK nationals arriving in Spain after the end date of the transition period (31st of December 2020), will have 3 months to apply for residency. Where not, the authorities reserve their right to grant extra time to submit the application.

According to the international firm LawBird, the Instruction refers to various “statuses” and procedures to obtain the residency card:

  • Applicants who have been residents for a period above 5 years and do have a permanent residency certificate, will submit their applications at the Police Station, receiving a permanent 10-year residency card.
  • Applicants who have been residents for a period above 5 years but do not have a permanent residency certificate, will submit their applications at the Police Station, receiving a permanent 10-year residency card.
  • Applicants who have been residents for a period under 5 years but do have a residency certificate, will submit their applications at the Police Station, receiving a “temporary” 5-year residency card.
  • Applicants who do not have a residency certificate will submit their applications initially at the Foreigners Office and once approved, they will need to request the issuance of their 5-year validity cards at the Police Station.

For those procrastinating about buying a property in Spain, the clock is ticking. Once Brexit is in force, any long-term rights for existing home owners are likely to be replaced with new rights, so now could be your last chance to secure your dream home by the sea or brand new apartment next to the golf.

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Healthcare and Pensions for UK citizens in Spain after Brexit

If you are considering to buy a property in Spain, the least thing you want to worry about is your healthcare or pension. 

By the moment there is no agreement on this between the UK and the Spanish government, however, in this article of La Moncloa is stipulated several scenarios whether if there is or there isn’t an agreement. In this section we answer the most common questions:

Healthcare for UK nationals who are tourists in Spain

If you are a UK citizen and wish to travel as a tourist to Spain after the date of UK’s withdrawal, you will still have right to healthcare in Spain. Your situation will not change. The only document you will need is The European Health Insurance Card. It will allow you to receive medical care during your trip, as the Community Regulations will continue to be applicable.

UK nationals who are pensioners in the British social security system and are resident in Spain.

In the case of UK pensioners resident in Spain, will their access to healthcare in their place of residence be affected following Brexit?

Your right to healthcare will not be affected, the Community Regulations will continue to apply as they were doing before Brexit..

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