The figure is 20,000 more than at the peak of the property boom
in 2007 before the bubble burst and send Spain reeling into an economic crisis
that continued for six long years.
Fuelling the rise in property prices is interest from foreign
buyers with 18.7 percent of Spanish property sales or almost two in every ten
property sales coming from abroad.
British buyers continue to make up the largest group of foreign
nationals buying property in Spain with 7,613 purchases between January and
June, an 8.8 percent rise on the same period a year earlier, they now represent
14 percent of foreign investors.
Chief Executive of international property
trade body, the Association of International Property Professionals (AIPP)
Mr Robinson discusses the implications of
Brexit and international property, including the buying process, living
overseas and on the industry.
He says, “The overseas property sector is
in for a bumpy ride over the next five years” as the ramifications of Brexit
play out. As a result, the AIPP wants to ensure that the rights and protection
of British-resident owners of a foreign property – estimated to be more than
one million – are included in government considerations over Brexit.
Can foreigners buy property in Spain?
British buyers usually find the purchasing
process to be relatively uncomplicated, as there is no requirement to be a
Spanish resident to buy property. The country actively encourages investment
from outside the country in the property market, with a Spanish NIE tax
identification number being the main legal requirement.
However, uncertainty about the final Brexit
agreement is causing some Brits to delay their property purchase until it
becomes clear exactly what deal will be made. Although it’s unlikely that the
current situations around mortgage lending or property rights are set to
change, there are question marks about future healthcare provision and
Deferral of exit tax
In 2015, Spain introduced an exit tax.
Individuals who leave Spain with investments exceeding €4m are liable to pay
capital gains tax on the unrealised profit of their investments valued on the
last day of the last year of assessment. The limit is reduced to €1m when the
individual holds more than 25% of a company.
There is no right of set-off of any latent
If the individual moves to another EU/EEA
country then they benefit from the right to defer payment of tax until the
sooner of either the disposal of the particular investment or 10 years.
The maximum capital gains tax rate in Spain
is 23% and is the same in all the autonomous regions.