As a result of the UK voting to leave the EU in 2016 quite a lot has changed for people from the UK with regard to owning a house in Spain. Brexit has resulted in there being more restrictions on both owning and renting a home as well as the amount of time you can spend there if you are not a resident in Spain. This month, we ask Malcolm, co-owner of Second Home Andalusia, to take you through some important considerations if you are a UK National wishing to buy a property in Spain.

What are the biggest differences to buying a house in Spain before and after Brexit? 
The first thing to say is that there is no change in taxation on the purchase and sale of properties and the purchase process and is exactly the same since Brexit so your rights and obligations as a property owner have not changed. 
 
However, the main difference is that Britain is no longer part of the European Economic Area (EEA) which means that from 1st January 2021 the rate of non-resident income tax for UK residents who rent their properties in Spain went up from 19% to 24% and also the running costs and expenses can no longer be deducted from the rental income. 
 
What should you pay attention to in preparing to buy a house if you are from the UK? 
Maybe the biggest consideration of all is that before Brexit UK nationals benefited from freedom of movement to live and work in any country within the European Union (including Spain). As from 1st January 2021 the rules relating to the length of stay in Spain changed, you are no longer able to stay for more than 90 days at a time in any 180-day period. It is worth noting that if you travel to Spain via any other Schengen country that this time period will also be added to the 90-day tally.  
 
If you want to buy a property in Spain and become a resident or retire there, is that possible? If so, what is the process? 
The good news is YES, it is possible but you have to be eligible to apply for a visa. Here is a brief description of some of the visas available for those wishing to buy a property in Spain: 
 
THE NON LUCRATIVE VISA (NLV) - is the most popular but if you want to continue working you cannot work for Spanish companies. You will need to show that you have "sufficient financial resources" and to have health insurance for you and your family. As of 2023 you will have to have a minimum monthly income of €2,400 each month and for each dependent living with you, you need to show another €600 per month. 
 
You can renew after 1 year then it renewable every 2 years. Once you have lived in Spain for 5 consecutive years you can convert it to a permanent residency permit. 
 
THE GOLDEN VISA - you will need to invest €500,000 in property, shares, businesses etc, or a mix of them. 
 
DIGITAL NOMAD VISA - this gives non-EU nationals working for a foreign company, whose job allows them to work away from home, the opportunity to live and work in Spain for up to 5 years. There are strict requirements in order to apply and you have to be able to show you can support yourself financially. After 5 years you will be entitled to permanent residency in Spain. 
 
SELF EMPLOYED VISA - this is if you want to run a business in Spain for 1 year and can be renewed in the same way as the Non-Lucrative Visa above. 
 
WORK EMPLOYMENT VISA - for this visa you will have to have had a job offer, then your employer must request a work permit for you to legally work in Spain. 
 
Finally, has Brexit affected property sales in the Axarquia region? 
 
Potential buyers from the UK that do not want to live here permanently now have to consider if the new rules relating to the amount of time they can spend here and the increase in non resident income tax are too restrictive compared to how things were before the change of rules in Jan 2021.   
It has also meant that some non resident UK owners have decided to sell their properties here because of these restrictions, but on the other hand we have had a lot of enquiries from the UK asking us to explain the visa options (see above) as they are planning to seek residency here in the future.  
The reality on the ground is that any vacuum caused by the drop in demand from the UK  is more than being filled by the demand coming from the EU countries. 
 
If would like any further information on these issues then do not hesitate to contact us. 
Un saludo, 
Malcolm

Note: this information provided is correct at the date of publication.