New chapter of Brexit: Will it affect Spanish real estate?

This article was written and published in Spanish and has been translated into English via Google Translate. Click here to read the original article.

The United Kingdom is the country that invests most in the Spanish real estate market. In 2018, 10,127 homes were sold to Britons, an increase of 10.7% over the previous year.

After the resignation of the Prime Minister, Theresa May, doubts about the future of the United Kingdom have fueled debate about its effects on the Spanish real estate market. "There is a strange feeling that any relationship could be lost, but regardless of how the political agreement on separation, there are three reasons that force the relationship to endure," maintains the Brexit report, beyond the uncertainty developed by Viva Sotheby's International Realty.

The first reason is the relationship between Spain and non-EU countries. These countries invest recurrently in Spain, which offers plans such as the Golden Visa and fiscal policy to those who want to buy their second home in the country. In the last ten years, the investment of countries such as Sweden, Norway or Luxembourg in housing has grown remarkably. "There is no reason to think that the United Kingdom is different from them," says the study.

The United Kingdom is, in fact, the country that invests the most in the Spanish real estate market. In 2018, 10,127 homes were sold to Britons, an increase of 10.7% over the previous year. In addition, "the fact that Spain is the country that hosts the most British implies that the United Kingdom will also be forced to negotiate with the country." The third reason is the relationship with Gibraltar.

It is also worth bearing in mind the evolution of the pound. The value of this currency has decreased by 12% compared to the date of the Brexit referendum, a situation with clear repercussions in the process of buying and selling homes in Spain.

If the pound continues to lose value, buying in euros could be a big investment. For international buyers, acquiring assets in Spain could mean a diversification of risk in a context of macroeconomic uncertainty.

Brexit will not affect, however, the taxes and costs of the purchase and sale of homes, outside the buyer's nationality. The departure of the United Kingdom from the European Union can, however, affect inheritance and estate taxes.

This article was written and published in Spanish and has been translated into English via Google Translate. Click here to read the original article.

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