Non-resident property owners and Brexit

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This topic contains 13 replies, has 7 voices, and was last updated by Profile photo of Ptt Ptt 5 months, 2 weeks ago.

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  • #190019
    Profile photo of Arthur Stuttard
    Arthur Stuttard
    Participant

    It has taken me ten years to obtain parity for non-resident property owners on CGT and IHT, with the assistance of the European Council and the European Court.  We lose that protection if we exit the EU and once again are at the mercy of the Spanish Government who regard us as cash milch cows with no rights of representation.

  • #190021
    Profile photo of Mark Stücklin
    Mark Stücklin
    Keymaster

    Yes Arthur, it looks like a Brexit could be bad news for British property-owners in Spain, both resident and nonresident. I’m going to do an article on this in the next week or so.

  • #190638
    Profile photo of Ptt
    Ptt
    Participant

    Does European Economic Area membership make any difference ?

  • #190642
    Profile photo of Mark Stücklin
    Mark Stücklin
    Keymaster

    Nobody really knows. Anyway, here’s the article I did on this, in case you missed it:

    UK EU-referendum implications for Spanish property market

  • #190643
    Profile photo of marios
    marios
    Participant

    I have decided its not worth all the hassell of renting and 3 monthly returns and 20-25% tax and will only rent to family so will be pulling all my adverts as of May cut off point.

  • #190651
    Profile photo of jp1
    jp1
    Participant

    Arthur, thanks for your determination in helping us on the tax front, maybe one day I can take advantage of your hard work (to date I have only lost money is Spain).

    Anyway, from the telegraph…

    “Residents of any EU or European Economic Area country (including Britain), by comparison, pay 19pc on gains from renting or selling properties.

    Currently the same tax treatment applies to residents of EU and EEA countries, including non-EU members, because having equal tax rules for locals and other Europeans is thought to fall under the principle of the free flow of capital within the single market.”

    Having won that right, I don’t think it will change as we will still be part of the EEA.

    • This reply was modified 7 months, 1 week ago by Profile photo of jp1 jp1.
  • #190654
    Profile photo of Ptt
    Ptt
    Participant

    That was my opinion jp1. good you posted without disrespect to Arthur who is very good. (Would be very interested Arthur if you have any comment on my thread of yesterday on Selling up with a capital gain and Buying in Spain and taking up residence in same tax year)

  • #190670
    Profile photo of brianbernmmet
    brianbernmmet
    Participant

    I’m Irish, my husband is English, jointly own a holiday home in Spain.  if UK votes to come out of EU, how will this affect us as a couple?

    • #190970
      Profile photo of Mark Stücklin
      Mark Stücklin
      Keymaster

      How will thi affect you as a couple? In the event of a Brexit it might be better to have the property in your name only. But the truth is nobody knows what would happen after a Brexit vote. The world will not stop turning. But I wouldn’t worry about it. At this point a Brexit looks unlikely.

  • #191342
    Profile photo of Mark Stücklin
    Mark Stücklin
    Keymaster

    The Brexit debate has not covered the UK in glory.

    I found this to be one of the best assessments of the issues:

  • #191343
    Profile photo of Mark Stücklin
    Mark Stücklin
    Keymaster

    Sent to me by email:

    I am very worried indeed that Britain will make an historic mistake by voting to leave the European Union next Thursday. So I wanted to invite family and friends to think very carefully before they make this choice, and remember that:

    • this is not an election, where we can change our minds in five years’ time. This decision will be irreversible and for ever. It will have consequences for our children and grandchildren. This is very very serious. It is not about hitting back at “experts” or the “establishment” or “Europe”. Nor is it about politicians or personalities. It is about future prosperity and security for every single inhabitant of these islands, for them and for their descendants;
    • in making a choice as complicated as this, now is not the time to deride or ignore the experts, however satisfying that might feel. Nor should we ignore our friends and allies from around the world. Their overwhelming view is that Britain will be less safe, less secure, less successful, and, above all, poorer, perhaps much poorer, as a result of a decision to leave the world’s most successful economic community of free nations;
    • Britain is doing very well at present, with the fastest growth in the developed world, and the highest employment in our history. Even those who favour Brexit, acknowledge that there will be a short term shock – which could be very severe – to the British and European economies. But the aftershocks will go on for many decades, with Britain permanently poorer.
    • Much of the debate about sovereignty is based on myths and worse. On her own Britain would have far less ability to protect and promote our economic interests than we do as part of a club of other rich and powerful nations. By sharing our sovereignty we maximise it. But we don’t lose it: the fact that we can make next week’s choice shows that we still have it.
    • I understand why people are worried about immigration, and everyone agrees that more must be done to manage it, and its consequences in terms of pressure on services, housing etc. But immigration is a measure of our success as an economy and a society, and a huge factor in that success: without immigrants, we would be a much less successful economically. We need to remember that there is even more immigration from outside Europe. Pulling up the drawbridge to Europe is the wrong response, which would do us far more harm than good. And I can’t help feeling that much of the opposition to immigration reflects values that I would not regard as worthy of a great nation like ours;
    • There is no certainty about any of the alternatives to membership of the European Union, each of which would leave us worse off, and all of which would take years to negotiate.
    • Of course the EU is annoying, but, in my direct experience, the realities – as opposed to the myths – are not significantly more annoying than other forms of imperfect democratic government closer to home. And while walking out might give some short term satisfaction it would leave us far worse off in every way: our folly would become apparent in days, but its consequences would last for decades.
    • In the long run of history, Britain deciding to leave the European Union could be the start of something much bigger and more dangerous for Europe and the West, analogous to America’s decision after the Great War to walk away from the League of Nations.

    So please think hard and long before you cast your ballot next week. This is the most important political choice you will ever make. Some say that the longer-term benefits of us “taking back control” would be worth the short term price. In my view, the long term price would be even higher than the short term shock. For decades to come we – and those who come after us – would be paying the penalties for a mistaken choice next week based more on emotion than cool reason.

  • #191388
    Profile photo of Ptt
    Ptt
    Participant

    I have decided too to vote to remain. We will just have to fight  our corner harder within the EU along with those who seek also to keep as much sovereignty as we can. It will also help us with Gibraltar and it will keep the Spanish in check in their dealings with us as they are apt to try to stitch us up if they can get away with it!  There is an opportunity cost with this because in the long term we might have done better out but there is no certainty about this . Meanwhile £ exchange rate will be better for buyers and those living there with Uk source incomes and it will guarantee the right to live in Spain all year round if you want to. A weaker £ would have benefitted sellers who want to repatriate their money to Uk but opportunities might arise anytime in this respect because these things have often ups and downs. My brother who wishes to retire to Spain today is nervously watching things because his move really depends upon a remain vote. Otherwise we might be limited to 3 or 6 months then have to cross the border and come back again on a regular basis but people already established in Spain may be allowed to stay if the Spanish take a tolerant attitude. Well down the road we might have got a bilateral agreement with the Spanish and what we might not forget is that Eurozone has economic problems that might never be solved and it might break anyway but at least we will not get the acrimony for it if we leave now and cause others to jump ship too !

  • #191417
    Profile photo of mh
    mh
    Participant

    I am still stunned by our decision to quit the EU.

    Britain is one of the ‘big three’ – to use the academic term – in the EU and, if we can not influence the future of the EU, we sure as hell are not qualified to manage ourselves outside the EU. I have met about 35 German, Spanish, Swiss, French and American professionals in the 48 hours since the results were announced and all of them – without exception – have asked me if the British are mad. How should I answer?

    I have no idea whether leaving the EU will in the long run be a good thing or a bad thing but for sure we have just committed ourselves to a portfolio of completely unnecessary problems. The phrase “shooting oneself in the foot” springs to mind. I did not hear one argument from the Leave campaign – immigration, sovereignty, democracy or control – that does not fall squarely at the door of present and past UK Governments.

    The vote to leave the EU will go down in the history of the world as one of the oddest, most inexplicable and worst decisions ever made by plebiscite.

  • #191421
    Profile photo of Ptt
    Ptt
    Participant

    We really will have to wait and see what happens. The referendum is actually non binding and the result was achieved with much misinformation about immigration and freedom of movement. Our Uk Parliament may have something to say about this. Other news today is that Rahoys Party Popular increased its representation in the Spanish Parliament and is not far short of an overall majority and the current arithmetic makes it easier for him to form a new Government if it’s still difficult. Podemus came in third and it will be very difficult for a left government to be formed with such a strong performance for the centre -right. We must congratulate the Spanish people on their common sense.

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