5 Questions on the effects of Brexit when buying, owning and selling property in Spain

  1. Will I still have rights to buy and own a property in Spain?

Of course yes, your acquisition rights will remain intact. Ownership rights as regulated in our Civil Code are the same regardless of nationality.

  1. Will I still have rights to rent it out?

Again, of course, rental rights are part of the ownership rights and are regulated in a special Law (Urban Lettings) regardless nationality. Submission to administrative rules for the renting into the tourism market will also remain the same

  1. Will there be different taxes to be paid when buying a property?

Same taxes will apply as today, transfer tax or VAT (depending on if you are buying from a developer or an individual owner) are also regulated in our Tax Laws independently to the nationality of the buyer.

  1. Will there be different taxes when owning the property?

There are two main taxes that you pay when you buy a property in Spain, not being a Spanish national:

  1. IBI Tax—In common with Spanish nationals, it is calculated on the cadastral value of the property and nationality does not affect in any sense
  2. Nonresident tax— It is a tax you pay on property in Spain, whether you rent it or not. After Brexit the tax rate will be higher (increased from 19% to 24%) but, if not rented this is calculated on 2% of the cadastral value, so not a large amount. If rented, it is calculated on real incomes generated.
  3. Will there be different taxes when selling the property?

There are two taxes to consider when selling your Spanish property:

  1. Local Council Plusvalia tax. Which takes into account values at buying at selling and do not differentiate between EU residents or non EU residents.

b. Capital Gains: It will increase from 19% to 24% BUT, in any case that capital gains could also be requested in the UK. Spain-UK has a Treaty to avoid double taxation in income taxes which will remain at least as it currently or will be amended to alleviate possible Brexit effects.  These bilateral treaties have nothing to do with EU agreements.

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