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“Is buying property in Spain a good idea after Brexit?” is one of the questions we have been asked the most in recent weeks. Many people are unsure what the future holds in the wake of the Brexit vote. For some amazing budget-friendly properties in Spain, you can check out https://www.javeaestateagent.com
This article looks at what life would be like for individuals considering buying a home in Spain following Brexit, which took place on 1st February 2020. Let’s read further to understand how you can buy property in Spain.
Yes, After Brexit, YouCanStillInvest in RealEstate in Spain!
The right to purchase property in Spain is not limited to citizens of the European Union. Many populations from all over the world purchase and own real estate in Spain. Property in Spain is available to anyone who can afford to pay the possession price. That has not altered as a result of Brexit.
The purchase tax, the property registry fee, the Notary’s charge,and a few small additional expenses are all included in the cost of buying a home in Spain. And these are not affected by Brexit if you want to purchase a property in Spain.
Taxation for Foreign Nationals who Buy Property in Spain!
After Brexit, you will still be compelled to pay tax if you purchase a property in Spain! Purchase tax, IBI (similar to council tax), and VAT (called IVA in Spain) are the three main taxes you will encounter as a property owner in Spain.
They are all charged at the same rate regardless of nationality; however, all the other taxes you must pay due to owning a home in Spain have not altered.
Buying Property as an Investment (Rental as a Source of Income)!
Yes, post-Brexit, foreign nationals can choose to buy property in Spain and rent it out to generate a source of income. Your right to do whatever you want with a property you own in Spain is unaffected by your nationality.
If you want to buy a home in Spain to rent out for a short or long period, you can continue to do so after Brexit, subject to the restrictions in each autonomous community.
The tax rate on rental income earned in Spain has changed. In Spain, EU members must pay a 19% tax on rental income. Following Brexit, UK nationals will be required to pay the same rate of tax as non-EU citizens, which is now 24%.
Before Brexit, you could lower your tax liability by deducting permitted rental expenditures, but this is no longer an option for UK residents, who must pay 24% of gross rental income tax.So, is it still a good idea to invest in real estate in Spain after Brexit?
Conclusion!
Brexit will not dissuade you if you have decided to buy a home in Spain. The truth is that Brexit has had little impact on the fundamentals of purchasing and owning property in Spain.
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