Post Brexit Update

Post Brexit Update from Murcia Villas:

Finally, the saga of Brexit has been done and dusted. In terms of property ownership in Spain UK Passport holders will fall into the same category as buyers from any other country outside the European Union; for example Norway, Switzerland, USA, Turkey.

We are pleased to say that the Spanish government is very positive in their stance and continue to welcome UK buyers to purchase a holiday or permanent home here in Spain.

Length of stay in Spain

  • Non residents and owners of property from outside the European Union can now reside in Spain for up to a maximum of 90 days within a 180 day period. This will also applies if you travel as a tourist; to visit family or friends; to attend business meetings;, cultural or sports events; or for short-term studies or training. 
  • Those wishing to remain more than 90 days will take up residency in Spain (non fiscal).
  • Any Foreign non EU national wishing to remain for more than 6 months will be obliged to take up “residencia fiscal” and declare their global income to the Spanish tax authorities. However, existing double taxation arrangements for UK nationals living in Spain have not changed.  We would recommend clients to take advice from an Asesoria / Tax Advisor for the latest and most accurate fiscal information.

Health Care

  • As long as you are eligible for medical coverage in the country that pays your pension (both State Pension or Government Pension), you will be able to receive medical coverage in Spain. To access this coverage, you must apply for the S1 in the UK before you arrive in Spain. You must then hand over your S1 form to the INSS office in Spain to finalise the process.
  • If you are unable to provide the S1 form, you can either opt for private medical coverage or subscribe to the Health Service through the Convenio Especial – this incurs a monthly fee. The public health insurance scheme can only be accessed by those not entitled to healthcare in their country of origin.

*Source Tejadasolicitors.com

The Buying Process

As before you will need to apply for a NIE certificate, a fiscal number that is required when purchasing an asset in Spain.

We would encourage all our buyers to use an independent reputable Solicitor to help you with the N.I.E. and legal buying process. We are happy to recommend and effect an introduction.

Buying Costs

In the region of Murcia, for re-sale (second hand) property allow around 10% on top of the purchase price to cover stamp duty, Solicitor, Notary and Registration fees but for new build property allow around 14% on top of the purchase price.

In the region of Valencia the cost of re-sale property will increase by 2% as transfer tax is more expensive.

In addition, if you purchase using a Spanish mortgage you will need to factor in a further 3% in additional costs.

Once an owner what ongoing taxes are payable?

UK Passport holders will now fall into the same category as other residents of other counties outside the EU who own a property here in Spain so nothing much has changed. Owners will be subject to an annual Non Residents tax and if rental income is generated from the property this income will need to be declared to the Spanish authorities.

To help with this Murcia Villas can recommend and introduce our buyers to a local qualified Accountant/ Asesoria Fiscal or Gestoria at the appropriate time.

All the above information is correct to the best of our knowledge however these elements are subject to change by the Spanish treasury and autonomous regional communities.

DISCLAIMER

Murcia Villas SL for themselves and for the owner of the property whose agents they are give notice that:

  1. 1. These particulars do not constitute any part of an offer or a contract.
  2. 2. All statements contained in these particulars are made without responsibility on the part of Murcia Villas SL.
  3. 3. None of the statements contained in these particulars are to be relied upon as a statement or representation of fact.
  4. 4. Any intending purchaser must satisfy himself/herself by inspection or otherwise as to the correctness of each of the statements contained in these particulars.
  5. 5. The owner does not make or give and neither do Murcia Villas SL nor any person in their employment has any authority to make or give any representation or warranty whatever in relation to this property.
  6. 6. Where every attempt has been made to ensure the accuracy of the details contained here, measurements of doors, windows, rooms and any other items are approximate and no responsibility is taken for any error, omission, or mis-statement. These details are for illustrative purposes only and should be used as such by any prospective purchaser. The services, systems and appliances shown have not been tested and no guarantee as to their operability or efficiency can be given.
  7. 7. Prices are quoted in euros, working with a conversion rate of 1.10 euros to the pound, discrepancies may occur in prices for holiday accommodation due to currency fluctuations.