A British councillor claims that Spain has thrown British expats in the country several post-Brexit "curveballs", including tax changes which are set to hit the pockets of Britons abroad, Express.co.uk reports.
Some things remained unchanged for the around 360,000 British expats registered as living in Spain after Britain left the EU in 2020. But for some Brits - including those not registered as Spanish residents - there was a raft of paperwork to get through in preparation for Brexit, in addition to potential economic implications.
British councillor Bill Anderson moved to Spain nearly 20 years ago, he told Express.co.uk that one of these “curveballs” was the tax implications for the roughly one million properties in Spain owned by Britons.
Many of the properties were purchased as investments to generate rental income from holidaymakers. Now, however, the purchasers are classed as non-EU citizens so the tax rate on rental income for Brits has increased from the flat rate of 19 per cent to 24 per cent.
British expatriates will also stop being able to offset expenses like cleaning and maintenance against their Spanish properties post-Brexit.
As non-EU nationals, Britons are now limited to stays of just 90 days in Spain in a 180-day period.
Before Brexit, British holiday-home owners could spend up to 183 days a year at their second properties without becoming Spanish residents.
Mr Anderson said, “For people who maybe let out their apartments when they weren't here, they've lost a lot of rights in terms of tax breaks for that.
“Previously, as EU members, when they did their tax returns, they could deduct all of the costs against the property against any income.
“That's been lost to them. So, they’ve got an apartment, it’s empty for six months, they can’t use it the way they want to, and they're getting taxed at a higher rate with no deductions.”
Source: Express.co.uk
A British councillor claims that Spain has thrown British expats in the country several post-Brexit "curveballs", including tax changes which are set to hit the pockets of Britons abroad, Express.co.uk reports.
Some things remained unchanged for the around 360,000 British expats registered as living in Spain after Britain left the EU in 2020. But for some Brits - including those not registered as Spanish residents - there was a raft of paperwork to get through in preparation for Brexit, in addition to potential economic implications.
British councillor Bill Anderson moved to Spain nearly 20 years ago, he told Express.co.uk that one of these “curveballs” was the tax implications for the roughly one million properties in Spain owned by Britons.
Many of the properties were purchased as investments to generate rental income from holidaymakers. Now, however, the purchasers are classed as non-EU citizens so the tax rate on rental income for Brits has increased from the flat rate of 19 per cent to 24 per cent.
British expatriates will also stop being able to offset expenses like cleaning and maintenance against their Spanish properties post-Brexit.
As non-EU nationals, Britons are now limited to stays of just 90 days in Spain in a 180-day period.
Before Brexit, British holiday-home owners could spend up to 183 days a year at their second properties without becoming Spanish residents.
Mr Anderson said, “For people who maybe let out their apartments when they weren't here, they've lost a lot of rights in terms of tax breaks for that.
“Previously, as EU members, when they did their tax returns, they could deduct all of the costs against the property against any income.
“That's been lost to them. So, they’ve got an apartment, it’s empty for six months, they can’t use it the way they want to, and they're getting taxed at a higher rate with no deductions.”
Source: Express.co.uk