ARCHIVED - Brexit shrinks demand for second homes in Spain

The number of British residents buying a holiday home in Spain continues to fall, according to the latest data recently released by the Sede Registradores – Spain’s network of land registries

As the real impact of Brexit starts to make itself felt across the Spanish property market. Traditionally, the British have always been the biggest foreign buyers of property in Spain. Butover the last year that pre-eminent position has been eroded as German purchasers havesecured the top slot.

During the third quarter of 2021 British buyers accounted for 1642 transactions – 9.9% of allforeign sales. However, growth in year-on-year demand lagged far behind that of most other nations. Whilst demand from British buyers who are non-resident in Spain fell very sharply – down 47% versus the pre-pandemic year of 2019.

All of which suggests that the British are slowly but surely starting to vanish from the Spanish property market.

According to Nick Ball, spokesperson for Atlantico Homes Estate Agents, who are based in Lanzarote,

“The latest data is certainly interesting but perhaps not quite as gloomy as you might expect. As Brits who have chosen to live in Spain after Brexit are still as active in the property market as ever. Whilst the British still remain the largest foreign owners of property in Spain and the second largest buyers by nationality in 2021.”

“However, there is no getting away from the fact that the UK’s withdrawal from the EU has resulted in a number of changes that make buying a holiday home in Spain a far less attractive proposition than it once was. As owners can now only spend 90 days out of every 180 at their place in the sun. Whilst those who buy a villa or apartment as a  ental investment now have to pay 25% more tax on their earnings than was previously the case. And are also unable to reclaim previously accepted deductions against tax such as home insurance or mortgage interest.”