27/10/2021

Buying a home in Spain: Brexit and Golden Visa

Marbella’s luxury real estate market is going against the tide and facing the consequences of the COVID-19 pandemic, offering benefits to those who want to buy a home in Spain.

The Costa del Sol has experienced in recent decades an upturn in foreign investment in the real estate world. Specifically Marbella has a foreign population of 35,523 people, according to the latest figures from the National Institute of Statistics.

Luxury housing market in Spain

Spain is consolidating, after many setbacks, as an ideal option for the international buyer. The benevolence of the climate, the quality of life and the wide range of properties favor real estate investment from other countries.

Another determining factor is the current ease of teleworking; this allows you to continue with your profession practically anywhere in the world with an internet connection.

These circumstances are magnified when we talk about the Costa del Sol. If the quality of life is high throughout the national territory, in the case of the coast we also have the advantage of being close to the beach.

As Brainsre.com reports, there are numerous factors that also contribute to the fact that the Marbella area continues to consolidate itself as an increasingly active market: the reduction of the Property Transfer Tax applied by the Andalusian Government, mortgage interest rates at historic lows and the progress in the approval of the new General Urban Development Plan (PGOU).

Buying homes in Spain after Brexit

One of the big concerns for foreign investment in Spain is how the well-known Brexit has affected international relations. British citizens have historically been the group that has invested the most in the Spanish real estate market, especially in the areas of the Costa del Sol and the Costa Blanca, as well as the Canary Islands.

According to the Association of Registrars, the British, continued to lead the ranking of investments in the second quarter of 2021, although with less investment due to both the pandemic and Brexit.

One of the difficulties that British citizens may encounter will be when applying for a mortgage, as there is a variable that can affect the price and that is the fluctuation of the pound and the euro. Although in general, British citizens should not encounter any obstacles when investing in the Spanish real estate market, as the process and documentation required are practically the same.

Another change that will also be noticed will be travel to property; if they wish to stay more than 90 days in Spain, UK citizens will have to apply for a regular residence permit, as they cannot benefit from the European free movement agreement after leaving the EU. Although in this case, if a property of a certain value is acquired, foreign citizens can apply for the so-called Golden Visa, which brings them several benefits.

How to obtain the Golden Visa

The golden visa is a permit addressed to those foreigners who are interested in entering Spanish territory in order to make a significant capital investment. In the case of the real estate market, foreign citizens may obtain a residence permit through the purchase of a property worth 500.000 € (or more) free of all charges.

The applicant must have in order: the deed of sale that proves that he/she has bought that property, the acquisition of that property (in the Land Registry), and all the relevant taxes paid. In addition it is essential to have contracted a private medical insurance with a coverage equal to that of the social security in Spain.

Remember that the authorization as initial investor has a duration of 2 years and allows us to reside in Spain legally and without restrictions. In the case that the citizen is outside Spain, but with the property already acquired, he/she can apply for the golden visa at the Spanish Consulate in the country where he/she is legally residing.

In Marbella these applications are increasing progressively with the lifting of the restrictions by COVID-19, in fact a web page has been made available to foreign residents where they can easily apply for the Golden Visa or clarify any doubts about it. Do not hesitate and come to live on the Costa del Sol, come to Le Blanc.

Want to discover more? Visit our open villa and experience Le Blanc’s Luxury.