How could Brexit affect you if you own a property in Benidorm?
With the UK set to leave the EU attention turns to those people who have brought or have money invested in property abroad as there is a growing concern that they will be affected by new laws. So, whether you own a holiday home or are thinking about purchasing a property in Benidorm here is what you need to know.
Will I still be able to buy property in Benidorm?
The simple answer is yes you will, as currently there are no restrictions or requirements when it comes to British citizens buying or owning a property in Benidorm. It is not uncommon for British nationals to invest in a second home abroad or if they are planning to move, and with Benidorm being such a popular destination it has a lot to offer for UK investors.
Will it be more expensive?
As with any purchase of a property there will be fees and taxes to account for. When you purchase a property in Benidorm transfer tax is payable on existing properties, while Spanish VAT and stamp duty are payable on newly built properties purchased from a developer. All the above are payable regardless of the purchaser being a national of an EU member country.
Can I rent my property in Benidorm?
If you have purchased a property in Benidorm with a view to renting it out there are currently no restrictions to a landlord not being an EU national. Spain’s main legislation, Ley de Arrendamientos Urbanos, covers the rental of a property as a main home and for other uses i.e. renting it out.
What protection do I have as a UK buyer?
There shouldn’t be anything to worry about here as any property transaction is completed by the signature of a deed of sale before a Notario (Spanish public official) who will convey the property and confirm the identity of the parties giving validity to the transfer.
Is there a disadvantage if I try and sell my property after Brexit?
That scenario is unclear at the moment as there is no indication as to whether there will be future Double Tax Treaty International Agreements signed between the UK and Spain. Both countries do have treaties in place, with one relating to income tax while there is no Double Tax Treaty related to inheritance tax (IHT) - although HMRC does take into account any IHT that has already been paid in Spain.
As with any investment seeking advice from a professional is the best way to go, don’t go into anything without doing your research first to make sure that you are aware of all the laws, fees and charges that you might face.