Most people in the UK were hopeful to spend a beautiful life in sun kissed climes. However, they had to stop dreaming due to the threat of the Brexit vote to leave the EU. The Brexit negotiations are still on process and they have unclear consequences for those wishing to move to Spain. Some of those consequences could be related to the free movement of people between the UK and the EU countries and trade agreements that affect the decision of any UK’s citizen to move.
A current concern among the UK citizens is the access to healthcare, since those who want to move to Spain may wish to be attended in the country. It is also a great concern for those who are already living in Spain as there are 308,805 British citizens already in the country. Indeed, there has always been a strong relationship between the two nations of Spain and the UK, but Spain cannot be seen to have any mutual deal with the UK at this time. Furthermore, there has been a reciprocal agreement between the UK and Spain so as to provide the best health care to their citizens in each of their countries, mostly pensioners.
Ex-pats have never been a burden in Spain as they have to fund their own food, heating and their own personal money. Our country does not offer any sort of help such as financial benefits, housing providing or social benefits no matter whether they are EU members or not.
Also, if they own a holiday home in Spain, they will not a have a problem for outpatient as they can bring their medical insurance document. Thus, their UK health care card could be of use for emergency treatments in Spain. If they wish to start to work or start their own business in Spain, they could obtain the Spanish National Healthcare SIPS card.
Will there be any changes concerning the purchase of properties?
There is an enormous uncertainty regarding the treatment British citizens will receive after Brexit in Spain as well as their housing. Acquiring a property is a right that is not restricted to citizens of the EU in Spain. For that reason, it is important to highlight that British people will still be able to buy properties in Spain after Brexit. Spain’s foreign minister stated on the Andrew Marr Show that he will guarantee the stability of Briton’s lives in case the UK crashes out of the EU with no deal.
The cost of purchasing any property in Spain should not increase whether you are a Spaniard, a citizen of the EU or from anywhere else in the world. The reason for this is that everyone will be subject to the same costs, no matter the nationality they have. The costs for anyone acquiring a property are the agreed purchase price, the purchase tax, the Notary’s fees, the property registry and other expenses. Notary fees are set by the Spanish government on the basis of the number of clauses in the property deeds and the declared value of the property. After paying those, you only need to register your title to the property in the land register.
However, Brexit may have an impact on the Spanish property market in terms of currency and there may be extra costs to British citizens in real terms. Furthermore, another change could affect those Expats who want to rent their properties in Spain. This change is related to taxes involving the rental income you could earn in Spain. To begin with, for EU citizens, the rate of taxes in the rental income is of 19%; whereas for non EU citizens it increases up to 24%. Thus, taxes will increase after Brexit at this point. Also, in order to rent out their properties, they need to follow the local laws in the province of Spain in which it is located.
Possible effects on Mortgages
It is crucial to take into account that Brexit could also affect Mortgages. The drop in value of Sterling makes the purchase of Spanish premises more expensive for British people, both in terms of cash and ongoing property costs that obviously include mortgage payments. Presently, the rate is 1.20 Pounds to the Euro and it has dropped under 10% since vote for Brexit was confirmed. Moreover, this value may fall much more in the future and the UK Government has the intention to shore up the pound if necessary.
The weaker pound may lead to other consequences concerning mortgages. Once the UK stops being part of the European Union, British citizens may have their mortgages declined rather than approved after banks calculate their affordability status. It is fundamental to understand that banks always examine the exchange rate very closely whether the Sterling recovers against the Euro have a positive effect on the economical status of British customers.
If you want to buy a property in Spain, but yet you have a great uncertainty about how Brexit will shape the situation in Spain to make the move, please contact us to have a free consultation. We are always ready to help you make your dreams come true, Contact us! www.forsaleinspain.co.uk