After the new law was passed and the United Kingdom left the European Union, British citizens experience a number of changes that still affect them today.
In this sense, and referring to one of the negative points that Brexit has brought with it, it is true that part of the society that has been mostly affected by this new legislation has been British citizens who have properties outside the UK, for example in Spain.
This concern has been increasing dramatically and there are several English Speaking lawyers specialized in Spanish Law, who claim that their clients have seen the considerable increase in the taxes they require to be paid in Spain.
The main people affected by Brexit are British citizens, who do not live in Spain but rent a property in the country, as they will no longer be able to deduct expenses from their income tax return once they become non-EU citizens. Specifically, the measure refers to the IRNR (Non-Resident Income Tax), which for EU residents is 19% on the net income and for non-EU citizens is 24%.
There is still a lot of bewilderment among people who have a second residency in Spain and wanting to make a profit, and nowmust pay high amount of money after the Brexit law has been decreed. Furthermore, British owners of second homes who are not official residents in Spain, as of 31st December 2020, are already treated in the same way as Americans, Chinese, Russians and any other third country owner who does not have tax residence in an EU country.
Spain has always been one of the favourite places for foreigners, especially the British Citizen, who enjoy residing or visiting Spain. It is true that there are many Britons who decide to reside in Spain for a longer period than just a vacation, especially after the Brexit law was implemented. Obtaining a residence permit for a period of time, i.e. applying for a Golden Visa, has become increasingly popular and at the same time represents an investment for Spain.
This measure, after the pandemic and the Brexit, has become the preferred option for most international clients who turn to their lawyers to carry out this type of legal process. One of the positive points of this residence permit is that, it is not only suitable for the investor, but also for individuals’ immediate family.
If you find yourself in a similar situation and need legal advice, it is best to turn to lawyers specialized in Spanish law, and with whom you can communicate in your own language, to guide you throughout the process, especially in the aspect that refers to the Spanish taxes in general, a topic that increasingly arouses more concern, but which in turn many ignore its impact.
Every case is different and it would depend on the personal situation of each individual. That is why it is of the utmost importance to be well informed and know which path is best to follow to avoid any uncertainty and un-necessary taxation.