Frequently Asked Questions about buying property in Spain- COVID & BREXIT

StartGroup answers to the most common questions from our clients about buying property in Spain after Brexit and during the COVID pandemic.

COVID QUESTIONS:

Are the prices coming down due to COVID, lock downs and quarantines?

During 2020 we at StartGroup did not see a significant drop in prices in the areas on the Costa del Sol that we are most active in; Fuengirola, Mijas, Calahonda, La Cala, Cabopino and Marbella.

We did see a surge in demand for certain properties and a lesser demand for some other. For example Villas with private pool and gardens in Calahonda for under 500 000 Euros were in high demand and we sold more of those than usual during 2020. And now, as we enter 2021 we have more demand than supply for these properties.

Demand apartments in the centre of cities and urban areas without terraces have been decreasing as clients have put more emphasis than ever in outside space. This is not surprising after the almost 3 month hard lock down we had in Spain in the spring of 2020. These types of urban apartments had often glazed in the terraces and balconies to gain indoor space, and we see more and more people opening up again or changing the typical aluminium framed glasswork to invisible glass curtains.

Can you help me to look after my property as I can not travel to Spain?

Our property management section, PropertyCare.es, have been busy all year not only taking care of properties to which the owners could not travel, but also reforming properties on demand for the owners while they could not enjoy them. For example new bathrooms, new awnings, glass curtains and more. A lot of owners that have not been able to visit their properties during the pandemic have contacted the services of PropertyCare.es in 2020. Benefits include monthly visits to the properties with comprehensive report with photos sent to them by email, key holding, renovation services, rental management and more. PropertyCare.es even makes extra visits to the properties after extreme weather such as the floods we have had in Mijas and Marbella in the beginning of January 2021 to keep owners informed and up to date on their properties in Spain.

Will I need to get vaccinated in order to travel to Spain?

As of yet it is not decided and nobody knows for sure what will happen. We do know that Greece made a petition in the beginning of January to the European Union to issue some kind of certificate for vaccination for travel. It has not yet been answered by the EU but I think it is reasonable to assume that other countries with a big tourist section, like Spain, Italy and France would support the petition.

BREXIT QUESTIONS:

Can a British citizen still buy a property in Spain after Brexit?

Yes, no problem! Spain has no restrictions on nationalities that are allowed to buy property in Spain. And a British citizen can still get residential status in Spain for permanent living with the same benefits as before.

Will the costs of buying a property in Spain change after Brexit?

No, the taxes you pay when buying a property as well as notary and land registry fees stay the same. It does not vary because of the nationality of the buyer. But the buying cost do vary depending on in which autonomous region of Spain you buy in. Here is a link to our buyers guide that explains the buying cost when buying on the Costa del Sol which forms part of the autonomous region of Andalusia.

Buying as a rental investment - will I pay more tax than an EU citizen on my rental income for my Spanish property?

Yes, unfortunately UK residents will have to pay a bit more tax on rental income after Brexit. The British will now pay the same as other non-EU residents; 24% on the whole rental income while EU residents pay 19% on the net income after deductions such as rates, community fees etc. No deductions will be allowed for non EU residents. In any case there is a treaty between the Great Britain and Spain which means that you will never pay double taxes on the same income. So the 24% you pay in Spain will be deductible against the income tax you should have paid in the UK for the same income. So it is not as bad as it sounds in the first place.

And if you are a UK national but tax resident in Spain you will pay the same as other Spanish nationals and residents.

If I am a UK national but have Spanish residency, will I pay the above mentioned taxes at the same level as an EU citizen?

Yes, if you are a UK national but tax resident in Spain you will pay the same as other Spanish nationals and residents.

How long can I stay in my Spanish property?

As a British citizen you may stay in the Schengen area (all EU plus Norway, Iceland, Switzerland and Lichtenstein) for 90 days every 180 day period. For longer periods you will need to ask for a VISA or residency. We do not know the exact procedures as of yet, so please contact your local authorities. Here is a link for the British Embassy in Spain that should update information as it comes available.

Can I travel with my pet from the UK as I have been doing with the pet's passport?

There is some conflicting info on this but as far as we understand the UK issued passport for a pet such as a dog or cat will not be valid to travel into the EU the same way it has been. Please contact your local veterinary to get professional advise and the correct paperwork. You will be able to travel with your pet but you will probably need new documentation.

Other questions about buying property in Spain after Brexit and the COVID pandemic.

If you have more questions about buying property in Spain after Brexit and the COVID pandemic. Please email them to us and we will do out best to answer them in future blog posts. info@startgroup.com

All answers are given in good faith but please bear in mind that things keep changing. This article is written in January 2021.