The Brits love affair with buying property in Spain still continues despite the uncertainty of Brexit .

New figures reveal that the British were the number of buyers of Spanish property buying thousands of homes in Spain

During the first half of 2018, a total of 53,359 house purchases by made non-Spanish nationals, according to the latest data released by the General Council of Notaries this week. 

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 pensions.

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 capital losses.

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.

How this will change is very uncertain.

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