There has been plenty of discussion in the media about how Brexit will affect Britons’ ability to go on holiday within the EU from January 2021 onwards, but what happens to those who own property there?
Based on the information shared to date, we answer below your queries on how Brexit will affect British owners of property in Spain – covering the new 90-day rule, tax and NIE.
Q: Will the property purchase process change as a result of Brexit? A: No. Britons who buy property in Spain will still have to follow the same purchase process.
Q: I own property in Spain – will Brexit affect my rights as a homeowner? A: No, it won’t. Property rights are never linked to residency status. All owners of property in Spain have the same rights and obligations, regardless of where they are from.
Q: Are there any tax implications? A: There aren’t any tax implications in relation to property ownership. However, the rate of non-resident income tax that British nationals have to pay increased from 19% to 24% from January 1 2021. This is because Spain, along with other EU countries, distinguishes between EEA and non-EEA nationals.
Q: How long can I stay in my Spanish property after Brexit? A: From January 1 2021, rules regarding the length of your stay in Spain have changed. You are no longer able to stay for more than 90 days at a time in a 180-day period. Note that the 90 days starts as soon as you enter the Schengen Area. This means that if you travel to Spain via France, for example, the time you spend in France counts towards your tally of 90 days.
Q: What if I want to stay for longer – can I join two periods of 90 days? No. At present you can only spend up to 90 days in Spain, then you must leave the country. You will then not be able to return to the Schengen Area until 180 days have passed since your date of entry into Spain (or elsewhere in the Schengen Area).
Q: Does the 90-day rule apply even if I own property in Spain? Yes, it does. Spain may, of course, introduce new legislation to favour British property owners and allow them to spend longer periods of time in the country. However, at present, the government has not announced any new rules.
Q: Will my NIE change when the UK leaves the EU? No. Your NIE (foreigner’s identification number) is valid throughout your lifetime and does not change.
Q: What if I am officially resident? If you have a Spanish residence permit (known as the Tarjeta de Identidad Extranjero/TIE), your status falls under the Withdrawal Agreement set up between the UK and EU. This means your rights in Spain and the rest of the EU do not change after Brexit.
Whether you’re dreaming of a second home abroad, looking to make a profitable investment, or a mixture of the two, buying a holiday home is a luxury that can have both personal and financial benefits. Plus, renting out your residence in the UK, while you are abroad is a cost-effective way to bring in some extra income. Local yields in Lancashire average 6-7% and can often reach up to 10%.
If you’re thinking of renting in Lancashire, we’d be delighted to offer advice and help you through the process. Email our Lettings Director, Ian to make an appointment [email protected]
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