With the recent announcement of the departure of the United Kingdom from the European Union, many misconceptions have been generated as to what regards the sale of property by British citizens. Therefore, we would like to clarify a list of common questions that have arisen as a result of Friday, June 24th.
What implications does the fall of the pound have?
The devaluation of the British currency is obviously Brexit’s most visible short-term effect.
Constant currency value change is expected in the coming months, so experts recommend safeguarding from high risk currency exchange.
Being British, will I be able to buy properties in Spain?
Yes. The separation process of the European Union will take a period of minimum two years, maintaining British citizens’ rights as before the separation announcement, for a considerable period of time.
One thing to keep in mind is that despite the recovery in the price real estate in Spain in the last period, it is still 30% lower than ten years ago, highlighting a noticeable difference among the price in the UK.
Can I apply for mortgage?
Yes. Foreign citizens, as a rule, are requested a deposit of a 40%, and despite being susceptible, remarkable raise shall not be expected, besides the improve of interests at a European level.
What will happen to my property once the separation process is completed?
One in five from property acquisitions in Spain are non-EU citizens, having a very active role in Spanish real estate since these enjoys very similar rights to Europeans.
It is therefore unlikely that the separation process will affect in any way in this matter, since the Spaniards greatly value their non-EU customer.
Also, British citizens represent a 4% of the Spanish property market, forming one of the strongest groups of foreign investors, with Germany, France, Belgium, Italy and Sweden; making the fall of the Spanish property market, due to Brexit, highly unlikely; allowing, in the worst case, stagnation.
What effect will BREXIT have on pensions and inheritance?
British citizens resident in Spain, or any other country in the space of the single market, currently receive an annual increase in their pensions due to local inflation. However, before the departure of the EU, these could lose the right to such increase.
As for inheritances, British citizens have the same rights as Spanish citizens, and because double taxation is not applicable in the EU, there will be no impact on the agreements between the UK and Spain.
What will be the consequences for the European Health Insurance Card?
During the first two years estimated for the final departure from the EU, the European Health Card will continue to offer the same coverage to a reciprocal level between EU travellers. Still, thanks to the tendency to try to encourage the international health system, it is possible that even with the United Kingdom’s departure; British nationals will be able to enjoy these.
Due to the complexity surrounding the property issue, please turn to lawyers and tax advisers, specialists in the field, of DAEMI ZABALZA & ASSOCIATES, who can advise you at all times, thanks to their extensive experience and constant updating.