Living in Spain with Brexit. Two years in and we are still all wondering what will happen post Brexit and how it will affect people from the UK buying and owning property in Spain. The Brexit talks and speculation change almost daily, and for sure, no one can say for certain what the outcome will eventually be, but there are certain points that will hopefully give some reassurance to those following their dream to own property in one of the best world climates.
There is much debate as to whether people were misinformed during the Brexit elections, but the fact is that the UK is in talks to leave the European Union and only this week have been given the draft agreement which will form the basis of the Brexit deal. How will Brexit affect my right to live in Spain
A deal has been agreed that will protect the rights of UK citizens to live, work and study in the EU and for people who have moved to Spain before March 29th 2019, they will be able to continue to live as normal with no real difference to what they have previously experienced in their everyday lives. However, people of pension age may find that they will no longer be entitled to free healthcare which has previously been an entitlement as part of the UK’s European membership. How will it affect UK Citizens who already own a property in Spain
Nothing will change for existing property owners, Spain’s property market is open to all nations providing that they can meet all property buying criteria, so the UK leaving Europe should not really affect the opportunity to purchase in Spain
Taxes and purchase costs will remain approximately the same regardless of nationality, but we should expect that property prices may fluctuate as the European financial markets settle down after Brexit. I already own a Spanish property that I rent out, how will Brexit affect my rental opportunities
There are no restrictions on nationality EU or non EU when it comes to renting out your property in Spain, so post Brexit there should be no reason why this should change. Taxes on rental income may however change, at the moment EU citizens are charged 19% tax on income whereas non eu citizens are charged a higher rate of 24%. Brexit and Inheritance
At the moment nothing will change with the Inheritance laws in Spain, if you have made a will the law will be upheld to ensure your wishes are carried out. However there will probably be changes in the Inheritance tax rate, as the likelihood will be that non EU residents will be charged higher Spanish State Law tax, rather than local Inheritance tax laws. Tax
This is a complicated area to predict, at the moment as EU residents, UK citizens will pay taxes at the local regional rates, exactly the same as any Spanish citizen, when the UK leaves Europe, it is possible that any taxes due will be paid at the higher Spanish state tax level. At this stage this is not certain, and Spain may well adjust the tax laws to include UK citizens in the local tax rate band.
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